Molten Works Ltd Provides the Following Information About Departmental Consumption

question 34

Multiple Choice

Molten Works Ltd provides the following information about departmental consumption of allocation bases for its 3 support and 2 operating departments. $$\begin{array} { | l | l | c | c | c | c | } \hline &{ \text { Support Departments } } &&& { \text { Operating Departments } } \\\hline & \text { Personnel } & \text { Cafeteria } & \text { Maintenance } & \text { Machining } & \text { Assernbly } \\\hline \text { Personnel } & & 10 \% & 10 \% & 50 \% & 30 \% \\\hline \text { Cafeteria } & 10 \% & & 10 \% & 40 \% & 40 \% \\\hline \text { Maintenance } & 10 \% & 20 \% & & 50 \% & 20 \% \\\hline\end{array}$$ For the direct method, what proportion of the Personnel's costs will be allocated to the Machining Department?

• A) 62.5%
• B) 10%
• C) 42.9%
• D) 37.5%

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