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Parker Corporation Has Two Service Departments, Cafeteria and Engineering, and Two

Question 112

Multiple Choice

Parker Corporation has two service departments, Cafeteria and Engineering, and two operating departments. The number of employees in each department is given below: Parker Corporation has two service departments, Cafeteria and Engineering, and two operating departments. The number of employees in each department is given below: The costs of the Cafeteria are allocated to other departments on the basis of the number of employees in the departments. If these costs are budgeted at $69,375, the amount of Cafeteria cost allocated to Engineering under the direct method would be closest to: A) $0 B) $3,700 C) $3,750 D) $17,344 The costs of the Cafeteria are allocated to other departments on the basis of the number of employees in the departments. If these costs are budgeted at $69,375, the amount of Cafeteria cost allocated to Engineering under the direct method would be closest to:


A) $0
B) $3,700
C) $3,750
D) $17,344

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