Question: Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number

Using the direct method, Pone Hill Company allocates Janitorial Department costs

Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Number of Square Feet Employees Janitorial Department 100 20 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 The percentage (proportional) usage of the Janitorial Department by the Cutting Department is a. 20% b. 9.99 c. 80% d. 10%

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