Mitri Corporation Uses the Direct Method to Allocate Service Department

question 52

Essay

Mitri 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 Finishing. Administrative Department costs are allocated on the basis of employee hours and Facilities Department costs are allocated on the basis of space occupied.
Required:
Allocate the service department costs to the operating departments using the direct method.

---

Definitions:

Midlife Transition

Refers to a period, usually occurring in one's 40s to 60s, marked by self-reflection, reassessment of life goals, and significant emotional adjustment.

Stagnation

A state of being static, showing little or no change, progress, or advancement, often result in a feeling of being stuck.

Senile

Relating to or showing characteristics of old age, especially with regard to loss of cognitive abilities and memory.

Alzheimer's Disease

A progressive neurodegenerative disorder characterized by memory loss, cognitive decline, and personality changes, resulting from the accumulation of amyloid plaques and neurofibrillary tangles in the brain.