Business, 23.04.2020 20:54 PSBSolarYT

Jack Donaldson owns and operates Jack's Abstracting Service. Jack's two revenue generating operations (Abstracting Services and Closing Services) are supported by two service departments: Clerical and Custodial. Costs in the service departments are allocated in the following order using the designated allocation bases. Clerical: number of transactions processed. Custodial: square footage of space occupied. Average and expected activity levels for next month are as follows:

Numbers of Transactions Square Footage Expected Costs
Abstract services 50 1,800
Closing services 25 2,200
Clerical 1,600 $40,000
Custodial 5 10,000

Use the direct method to allocate the service department costs to the revenue generating departments. Provide the total costs for the revenue departments. What will be an ideal response?

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Jack Donaldson owns and operates Jack's Abstracting Service. Jack's two revenue generating operation...

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