27.

Riemer, Inc. has four departments. Information about these departments is listed below. Maintenance is a service department. If allocated maintenance cost is based on floor space occupied by each of the other departments, compute the amount of maintenance cost allocated to the Cutting Department. (Do not round your intermediate computations.)

	Maintenance	Cutting	Assembly	Packaging
Direct costs	$18,000	$21,000	$61,000	$36,000
Sq. ft. of space	900	1,400	2,400	3,400
No. of employees	10	10	10	10

A. $4,524.

B. $3,500.

C. $1,800.

D. $18,000.

PLEASE ADD EXPLANATION

$3,169.