The following information relates to Ray Corporation for the past accounting period. ...
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Accounting
The following information relates to Ray Corporation for the past accounting period.
| Direct Costs | |
| Service Dept A | $ 92,000 |
| Service Dept B | 72,000 |
| Producing Dept C | 27,000 |
| Producing Dept D | 32,000 |
| Proportion of service by A to: | Proportion of service by B to: | |||
| B | 10% | A | 30% | |
| C | 60% | C | 20% | |
| D | 30% | D | 50% | |
Using the simultaneous solution method, Department A's cost allocated to Department C is:
$55,200.
$60,000.
$70,268.
$113,600.
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