Catoire Consultancy Uses the Direct Method to Allocate Its Service

question 18

Essay

Catoire Consultancy uses the direct method to allocate its service department costs to its operating departments. The company has two service departments, Information Technology and Administration, and two operating departments, Corporate Practice and Government Practice. Data concerning those departments follow:
Information Technology Department costs are allocated on the basis of computers and Administration Department costs are allocated on the basis of employees. Required: Allocate the service department costs to the operating departments using the direct method.

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Definitions:

Enactment

Enactment is the process by which a legislative body passes a bill, thereby turning it into law.

Written Comments

Observations or critiques provided in written form, usually solicited to gather feedback or input on a specific matter.

Publication

involves the distribution of information or material to the public through various means, such as books, magazines, or online platforms.

Motion To Quash

A legal request made to a court to declare a previous decision or proceeding invalid or to suppress or void a legal process.