Compute direct method of allocating service costs

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Reference no: EM131770880

Question: The Danville Manufacturing Company has two service departments and two producing departments. The following data are available for 2006. Service Service Producing Producing Dept. 1 Dept. 2 1 2 Department Costs $12,000 $8,000 $60,000 $70,000 Number of Transactions 6,000 4,000 6,000 14,000 Square Feet Occupied 2,000 1,000 4,000 6,000 The costs of service departments 1 and 2 are allocated on the basis of number of transactions and square feet occupied, respectively. Refer to the Danville Manufacturing information above. Assuming that Danville Manufacturing Company uses the direct method of allocating service costs, the amount of service department 1 costs allocated to producing 1 would be: (If necessary, round your answer to the nearest whole number.)

Reference no: EM131770880

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