The following information relates to Osceola Corporation for the past accounting period. Direct costsService Department A$80,000 Service Department B 60,000 Producing Department C 15,000 Producing Department D 20,000 Proportion of service by A to:B10%C60%D30%Proportion of service by B to:A30%C20%D50%Using the reciprocal (simultaneous solution) method, Department A's cost allocated to Department C (rounded to the nearest whole dollar) is:
A. $48,000.
B. $98,000.
C. $60,619.
D. $58,800.
Answer: C
Business
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