Question: Using the direct method, Pinnacle Corp. allocates Janitorial Department costs based on square footage serviced. Cafeteria Department costs are allocated based on the number of
Using the direct method, Pinnacle Corp. allocates Janitorial Department costs based on square footage serviced. Cafeteria Department costs are allocated based on the number of employees served. The following information is given concerning its two service departments and two production departments, Cutting and Assembly:
| Square Feet | Number of Employees | |
| Janitorial Department | 100 | 20 |
| Cafeteria Department | 10,000 | 10 |
| Cutting Department | 4,000 | 60 |
| Assembly Department | 9,000 | 20 |
The percentage (proportional) usage of the Janitorial Department by the Cutting Department is: (round to two decimal places)
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