Wimbledon Corporation Has Two Production Departments, Assembly and Machining, and Two

question 110

Essay

Wimbledon Corporation has two production Departments, Assembly and Machining, and two service departments, Personnel and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of July, 2020 are as follows:
$$\begin{array}{c} { \text { Proportion of Services Used by: } } \\\begin{array} { l r r r r r } \text { Department } & \text { Direct costs } & \text { Personnel } & \text { Cafeteria } & \text { Machining } & \text { Assembly } \\\text { Personnel } & \$ 30,000 & & 0.40 & 0.30 & 0.30 \\\text { Cafeteria } & \$ 50,000 & 0.20 & & 0.50 & 0.30 \\\text { Machining } & \$ 80,000 & & & & \\\text { Assernbly } & \$ 70,000 & & & &\end{array}\end{array}$$
Required:
Compute the allocation of service department costs to producing departments for July 2020 using the direct method.

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