Parker Corporation has two service departments, Cafeteria and Engineering, and two operating departments. The number of employees in each department is given below: Cafeteria 10 Engineering Operating Department 1 Operating Department 2 40 500 200 The costs of the Cafeteria are allocated to other departments on the basis of the number of employees in the departments. If these costs are budgeted at $69,375, the amount of Cafeteria cost allocated to Engineering under the direct method would be closest to: Multiple Choice $3,700 $3,750 $17,344

Parker Corporation has two service departments, Cafeteria and Engineering, and two operating departments. The number of employees in each department is given below: Cafeteria 10 Engineering Operating Department 1 Operating Department 2 40 500 200 The costs of the Cafeteria are allocated to other departments on the basis of the number of employees in the departments. If these costs are budgeted at $69,375, the amount of Cafeteria cost allocated to Engineering under the direct method would be closest to: Multiple Choice $3,700 $3,750 $17,344

Name: Parker Corporation has two service departments, Cafeteria and Enginee
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Description: Parker Corporation has two service departments, Cafeteria and Engineering, and two operating departments. The number of employees in each department is given below:Cafeteria10EngineeringOperating Department 1Operating Department 240500200The costs o

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 6E: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing...

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Parker Company has two service departments, Cafeteria and Engineering, and two operating departments. The number of employees in each department is given below: Cafeteria 10 Engineering 40 Operating Department 1 500 Operating Department 2 200 The company uses the step method to allocate service department cost. Cafeteria is allocated first, and then Engineering. The costs of the Cafeteria are allocated to other departments on the basis of number of employees in the departments. If Cafeteria costs are budgeted at R69 375, the amount of cost allocated to Operating Department 2 would be closest to: A. R18 500 B. R18 750 C. R19 821 D. R46 875
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