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Question - The Kelsey Manufacturing Company Ltd has two production departments (Assembly and Finishing) and two support departments (Janitorial and Personnel). The usage of the two support departments in 2020 is as follows:
User of Support Personnel Janitorial
Personnel - 5% Janitorial 10% - Assembly 60% 40% Finishing 30% 55%
The budgeted costs in the support departments of 2020 were as follows:
Personnel $90,000
Janitorial $50,000
Using the direct method, what is the Janitorial Department cost allocated to the Assembly Department?
A. $28,948
B. $21,053
C. $34,158
D. $25,000
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