The ABC Company separates its activities into two operating departments and two support departments. Support Department 1 had budgeted costs of $90,000 and Support Department 2 had budgeted cost of $180,000 during the month of April. ABC allocates the costs of each support department based on service hours. The table presented here shows how many service hours each support department provided to the two operating departments, to the other support department, and to itself. Support 1 Support 2 Operating 1 Operating 2 Total Service Hours Provided Support 1 20 25 27 48 120 Support 2 1,000 400 3,000 2,000 6,400 If ABC uses the direct method to allocate support department costs, how much will be allocated to Operating Department 1 and Operating Department 2, respectively, in April?
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Support department costs are applied to product costs as
Support department costs are applied to product costs as
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