Hidden Corporation Uses the Direct Method to Allocate Service Department

question 27

Multiple Choice

Hidden Corporation uses the direct method to allocate service department costs to operating departments.The company has two service departments,Administrative and Facilities,and two operating departments,Assembly and Wholesaling. Administrative costs are allocated on the basis of employee hours and Facilities costs are allocated on the basis of space occupied.The total Wholesaling Department cost after the allocations of service department costs is closest to:

• A)$389,876
• B)$378,900
• C)$392,340
• D)$392,544

---

Definitions:

Corporate Stock

Ownership units in a corporation, represented by shares that can be bought, sold, or traded.

Shareholder

An owner of shares in a company or corporation, giving them certain rights and potential financial benefits.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights and liabilities.

Legal Administrator

A professional responsible for managing the operations of a law firm or legal department, including administrative tasks and financial management.