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10. VelCraft allocates costs from its payroll department and the maintenance department to its production departments using the direct method of allocation. Payroll department costs
10. VelCraft allocates costs from its payroll department and the maintenance department to its production departments using the direct method of allocation. Payroll department costs are allocated based on the number of employees in the department and maintenance department costs are allocated based on the number of square feet that the production department occupies within the factory. Information about the departments is presented below: 75 Number of Number of Square Department Costs Employees Feet Occupied Payroll $150,000 2,000 Maintenance $220,000 64,000 Molding 100,000 Finishing 60,000 Packaging 40,000 When the maintenance department costs are allocated, what amount will be charged to the packaging department? (Round your intermediate calculation to two decimal places) A) $44,000 B) $33,083 C) $70,400 D) $52,932 25
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