Quan Company Has Three Support Departments Whose Direct Department Costs

question 12

Multiple Choice

Quan Company has three support departments whose direct department costs are $20,000, $30,000, and $40,000, 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) $90,000.
• C) $760,000.
• D) $850,000.

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