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.
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