Sasha Company allocates the estimated $180,200 of its accounting departments cos

Question

Sasha Company allocates the estimated $180,200 of its accounting departments costs to its production and sales departments since the accounting department supports the other two departments particularly with regard to payroll and accounts payable functions. The costs will be allocated on the number of employees using the direct method. Information regarding costs and employees follows:

Department                                                                    Employees

Accounting                                                                              4

Production                                                                               26

Sales                                                                                         12

How much of the accounting department costs will be allocated to the production?

Explanation / Answer

Answer..

cost of Account department $       180,200.00 note: by the using the direct method cost of accounting department will be allocated as below

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