Question: Using the direct method, Plumb Company allocates Janitorial Department costs based on square footage serviced at the facility. It allocates Cafeteria Department costs based on
Using the direct method, Plumb Company allocates Janitorial Department costs based on square footage serviced at the facility. It allocates Cafeteria Department costs based on the number of employees served. The following data is shown for its two service departments as well as its two production departments, Cutting and Assembly: The percentage (proportional) usage of the Cafeteria Department by the Assembly Department is 75% 25% 18% 22%
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