The Production Section of a Firm Is Serviced by Personnel

question 4

Multiple Choice

The production section of a firm is serviced by personnel and computing as follows:
Personnel costs are allocated on the number of employees and computing costs on service hours. Overhead rates are based on labour hours. If the reciprocal services method is used to allocate support department costs, the total cost (rounded) allocated out of Personnel would be:

• A) $40 000
• B) $44 444
• C) $56 715
• D) $55 636

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