Hogan Inc. allocates its accounting department’s costs to its production and sales departments based on the number of employees in each department using the direct method.
Question
Hogan Inc. allocates its accounting department’s costs to its production and sales departments based on the number
of employees in each department using the direct method. If the accounting department’s costs are $1,370,000, use the following information regarding costs and employees to determine how much of the accounting department’s costs will be allocated to the production department?
Department Employees
Accounting 4
Production 26
Sales 28
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