Business, 23.04.2020 20:54 PSBSolarYT
Jack Donaldson owns and operates Jack's Abstracting Service. Jack's two revenue generating operations (Abstracting Services and Closing Services) are supported by two service departments: Clerical and Custodial. Costs in the service departments are allocated in the following order using the designated allocation bases. Clerical: number of transactions processed. Custodial: square footage of space occupied. Average and expected activity levels for next month are as follows:
Numbers of Transactions Square Footage Expected Costs
Abstract services 50 1,800
Closing services 25 2,200
Clerical 1,600 $40,000
Custodial 5 10,000
Use the direct method to allocate the service department costs to the revenue generating departments. Provide the total costs for the revenue departments. What will be an ideal response?
Answers: 3
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