1C3P WILCOX INDUSTRIAL HAS TWO SUPPORT DEPARTMENTS, THE INFORMATION S...

225. CSO: 1C3d LOS: 1C3p

Wilcox Industrial has two support departments, the Information Systems Department and

the Personnel Department, and two manufacturing departments, the Machining

Department and the Assembly Department. The support departments service each other

as well as the two production departments. Company studies have shown that the

Personnel Department provides support to a greater number of departments than does the

Information Systems Department. If Wilcox uses the direct method of departmental

allocation, which one of the following cost allocations would occur? Some of the costs

of the

a. Personnel Department would be allocated to the Information Systems

Department.

b. Machining Department would be allocated to the Information Systems

c. Information Systems Department would be allocated to the Assembly

d. Assembly Department would be allocated to the Machining Department.