Multiple choice accounting questions on:
Average day sales
Asset turnover ratio
<br>Since HR is the top-level department we need to distribute that first. In this case DP uses 20% of HR costs which is 20% of $45,000 = $9,000. The total cost to be allocated by DP to M and F is thus $180,000 + $9,000 = $189,000.
<br>The DP cost allocated to M thus becomes $189,000 * (70% / (70% + 20%)) = $147,000.
<br>We again start by allocating the HR costs as follows: 20 ...
This problem addresses multiple choice accounting questions