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Cost allocation using Direct method
Use the following information to allocate costs to the mission centers using the direct distribution method
Allocation Statistics
Cost cnetre
Direct cost
Purchasing- purchase orders(%)
Administration-salaries (%)
Support
Purchasing
80,000
0
5
Administration
40,000
15
Mission
Soup Kitchens
900,000
40
90
Counselling
300,000
45
Total Cost
1,320,000
100
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