Income from operations for Division H is $220,000, and income from operations before service department charges is $975,000. As a result, a. total service department charges are $755,000 b. total manufacturing expenses are $565,000 c. direct materials, direct labor, and factory overhead total $565,000 d. total operating expenses are $565,000

Question

Susan Gilbert

Business

27 August, 08:17

Income from operations for Division H is $220,000, and income from operations before service department charges is $975,000. As a result, a. total service department charges are $755,000 b. total manufacturing expenses are $565,000 c. direct materials, direct labor, and factory overhead total $565,000 d. total operating expenses are $565,000

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Answers (1)

Know the Answer?

London Barr · Answer 1

[A] Total Service Department Charges are $7,55,000

Explanation:

Working Notes:, consider the following calculations

Income before service dept. charges

9,75,000

Less: Income from Operations

(2,20,000)

Service Department Charges

7,55,000