Question
1.Sam Company has two service departments (Cafeteria Services & Maintenance).Sam has two production departments (Assembly Department & Packaging Department.)Sam uses a step allocation method where
1.Sam Company has two service departments (Cafeteria Services & Maintenance).Sam has two production departments (Assembly Department & Packaging Department.)Sam uses a step allocation method where Cafeteria Services is allocated to all departments and Maintenance Services is allocated to the production departments.All allocations are based on total employees.Cafeteria Services has costs of $220,000 and Maintenancehas costs of $250,000 before any allocations.What amount of Maintenance total cost is allocated to the Packaging Department?(Round to closest whole dollar) Employees are:
Cafeteria Services4
Maintenance6
AssemblyDepartment8
Packaging Department6
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