The Kelsey Manufacturing Company Ltd Has Two Production Departments (Assembly

question 20

Multiple Choice

The Kelsey Manufacturing Company Ltd has two production departments (Assembly and Finishing) and two support departments (Janitorial and Personnel) . The usage of the two support departments in 2012 is as follows:
The budgeted costs in the support departments of 2012 were as follows:
Using the direct method, what is the Janitorial Department cost allocated to the Assembly Department?

• A) $28 948
• B) $21 053
• C) $34 158
• D) $25 000

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