ABC Company has two service departments (A & b) and two production departments (X &...
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Accounting
ABC Company has two service departments (A & b) and two production departments (X & Y). The number of employees in each department follows. A - 30 B-70 X-400 Y-500
a. If ABC uses uses the direct method of cost allocation and allocates cost on the basis of employees. If B cost amounts to $1,980,000, how much of the department's cost would be allocated to Y?
b. If ABC uses the direct method of cost allocation and allocates cost on the basis of employees. If B cost amounts to $1,980,000, how much of the department's cost would be allocated to X?
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