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1st Me cant allocate back Service Department Cost Allocation - Step Method Reapster Manufacturing Company produced hair gel and has three service departments: Information
1st Me cant allocate back Service Department Cost Allocation - Step Method Reapster Manufacturing Company produced hair gel and has three service departments: Information Systems, Maintenance, and Payroll. 0 The IS Department's costs of $250,000 are allocated on the basis of square footage. The Maintenance Department's costs of $600,000 are allocated on the basis of number of machines. The Payroll Department's costs of $100,000 are allocated on the basis of number of employees. The company's two manufacturing departments, Mixing and Packaging, has direct departmental costs of $700,000 and $250,000 respectively. Further information regarding the company's service and manufacturing departments are below: Manufacturing Departments Service Departments Information Maintenance Payroll Mixing Packaging Systems Number of 2 16 5 21 20 employees Square 100 25 875 5000 4000 footage > 41 > 9000 Number of 0 0 0 25 15 machines >40 600,000 100,000 Costs 250,000 600,000 700000 150,000 Using the step method, calculate the total cost for each manufacturing department. (Step order: Maintenance, Payroll, Information Systems) OC Info systems naintenanas Payroll
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