Hunghi Company Has Three Support Departments Whose Direct Department Costs

question 107

Multiple Choice

Hunghi Company has three support departments whose direct department costs are $35,000, $45,000, and $55,000, respectively, and two producing departments whose direct department costs are $400,000 and $360,000, respectively. The combined total department cost for the producing departments after allocation of the support departments is

• A)$360,000.
• B)$760,000.
• C)$895,000.
• D)$135,000.