Accounting department costs will be allocated to production
Course:- Financial Management
Reference No.:- EM13929560

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Sasha Company allocates the estimated $189,300 of its accounting department 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 based on the number of employees using the direct method. Information regarding costs and employees follows:

Department       Employees

Accounting         4

Production          31

Sales      10

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

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