Sandven Corporation uses the direct method to allocate its two service department costs to its two operating departments. Data concerning those departments follow:
Service Department A costs are allocated on the basis of allocation base A and Service Department B costs are allocated on the basis of allocation base B.Required:Allocate the service department costs to the operating departments using the direct method.

Question

Sandven Corporation uses the direct method to allocate its two service department costs to its two operating departments. Data concerning those departments follow:

Service Department A costs are allocated on the basis of allocation base A and Service Department B costs are allocated on the basis of allocation base B.Required:Allocate the service department costs to the operating departments using the direct method.

Hridya Mohan · Accepted Answer

Final Answer : Allocation base for Service Department A costs = 32,000 + 17,000 = 39,000Allocation base for Service Department B costs = 32,000 + 5,000 = 37,000

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