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M&P Tool has three service departments that support the production area. Outlined below is the estimated overhead by department for the upcoming year.
The Repair Department supports the greatest number of departments, followed by the Tool Department. Overhead cost is allocated to departments based upon the number of employees. Using the direct method of allocation, how much of the Repair Department's overhead will be allocated to the Tool Department?A. $875 B. $7,000 C. $0 D. $11,667 |