Reference no: EM132683078

Question - Alpha Company has two service departments (Cafeteria Services & Maintenance Services). Alpha has two production departments (Printing Department & Binding Department.) Cafeteria Services has costs of $140,000 and are allocated to production departments based on their number of employees. Employees are:

Cafeteria Services 2

Maintenance Services 2

Printing Department 4

Binding Department 8

Alpha uses the direct method for service cost allocation. Use this information to determine for Alpha Company the dollar amount of its Cafeteria costs that are to be absorbed by:

1. the Maintenance Service Department.

2. the Printing Department.

3. the Binding Department.