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Amber Industries has two service departments: Human Resources (H.R.) and Accounting. These two service departments...

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Accounting

Amber Industries has two service departments: Human Resources (H.R.) and Accounting. These two service departments provide services to each other, and to three factories, as shown in the following table: Service Department Service Dept Operating Costs Percentage of services provided by the service department indicated in the far left column to each of the factories and service departments H.R. Accounting Factory A 15% 35% 25% H.R. $350,000 Accounting $880,000 25% Factory B 40% 15% Factory C 10% 35% Required: Calculate the amount of service department costs that will be allocated to each of the factories, using the Direct Method of service department cost allocation.
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Amber Industries has two service departments: Human Resources (H.R.) and Accounting. These two service departments provide services to each other, and to three factories, as shown in the following table: Required: Calculate the amount of service department costs that will be allocated to each of the factories, using the Direct Method of service department cost allocation

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