Sierra Company allocates the estimated $200,000 of its accounting department costs to its production and sales departments since the accounting department supports the other two departments particularly with regard to payroll and accounts payable functions. The costs will be allocated based on the number of employees using the direct method. Information regarding costs and employees follows:

Department       Employees

Accounting         4

Production          36

Sales                  12

How much of the accounting department costs will be allocated to the production and sales departments?

Answer rating: 100% (QA)

Accounting department costs that will be allocated to the production Costs to be ... View the full answer