Tardy Company Has Two Service Departments,Maintenance and Personnel

question 22

Multiple Choice

Tardy Company has two service departments,Maintenance and Personnel.Tardy Company also has two production departments,Mixing and Finishing.Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees.The following information has been gathered for the current year: If the direct method is used to allocate service department costs,then the cost allocated from the Personnel Department to the Finishing Department is ________.

• A)$14,147
• B)$16,800
• C)$20,000
• D)$33,600

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