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Based on information , total services cost allocated to production line (2)on base of direct method is A-120000 B-40000 C-80000 D-70000
Total service costs allocated to Production line2 will be60000/150000 * (100000+200000) =120000.
a-
=(100000+200000)* (60000/150000) =120000
A->>>>>>>>>>>>>>>>>>>>120000
4:6 :5
The share for the second product line is = 6/15
Aggregate of IT and HR Service cost =300000; the second product line can be allocated the due share as=120000.
As briefly described by below candidates, option A is correct