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The following information relates to Osceola Corporation for the past accounting period.
| | Direct costs |
| Service Dept A | $ | 94,000 | |
| Service Dept B | | 72,400 | |
| Producing Dept C | | 29,200 | |
| Producing Dept D | | 22,600 | |
| |
| Proportion of service by A to: |
| B | 10 | % |
| C | 60 | % |
| D | 30 | % |
| |
| Proportion of service by B to: |
| A | 30 | % |
| C | 20 | % |
| D | 50 | % |
| |
Using the simultaneous solution method, Department A's cost allocated to Department C is:
$56,400.
$67,200.
$71,579.
$106,400.
Answer & Explanation
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