Content Area Using the direct method, Pone Hill Company allocates Janitorial Department costs based on...
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Content Area Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Line Item Description Square Feet Number of Employees Janitorial Department 100 20 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 If the Cafeteria Department incurs costs of $500,000, how much of that cost
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