Koehl Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Administrative and Facilities, and two operating departments, Assembly and Wholesaling. Service Departments Operating Department AdministrativeFacilities AssemblyWholesalingDepartmental costs$19,440$71,340 $185,580$392,950Employee hours4,0002,000 22,00014,000Space occupied2,0001,000 39,0002,000 Administrative costs are allocated on the basis of employee hours and Facilities costs are allocated on the basis of space occupied. The total Wholesaling Department cost after the allocations of service department costs is closest to:
A. $403,990
B. $396,430
C. $402,601
D. $403,642
Answer: A
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