The Direct Method Is Used by Marrero Publishing, Incorporated, to Allocate

question 180

Multiple Choice

The direct method is used by Marrero Publishing, Incorporated, to allocate service department costs to operating departments. The company has two service departments, Information Technology and Personnel, and two operating departments, Prepress and Printing. Information Technology Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees. The total Prepress Department cost after service department allocations is closest to:

• A) $406,961
• B) $413,326
• C) $402,881
• D) $410,563

---

Definitions:

Dishonest Solicitor

A legal professional who engages in unethical or fraudulent practices.

Better Business Bureau

A nonprofit organization focused on advancing marketplace trust by rating companies and addressing consumer complaints.

Optical Character Recognition

Technology that converts different types of documents, such as scanned paper documents, PDFs, or images, into editable and searchable data.

Converts Images

The process of changing images from one format or medium to another, often involving digital conversion or manipulation to achieve desired characteristics.