Salt Company and Pepper Company are two businesses that share a common warehouse facility. Total...
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Accounting
Salt Company and Pepper Company are two businesses that share a common warehouse facility. Total costs for the facility are budgeted at $780,000, Accountants have estimated that if Salt Company did not use the facility the cost incurred would be reduced by 20 percent. What amount of the budgeted cost should be allocated, respectively, to Salt and pepper if the incremental allocation method is used? Assume that Pepper is the primary party O A. $624,000, $156,000 O B. $0 $780,000 OC. $600,000 $1,400,000 OD. $1,400,000, $600,000 O E. $156,000, $624,000
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