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3. (10 Points) Gomez Company has two service departments, Maintenance and Personnel. Gomez Company also has two production departments, Mixing and Finishing. Maintenance costs are
3. (10 Points) Gomez Company has two service departments, Maintenance and Personnel. Gomez Company also has two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees. The following information has been gathered for the current year: Maintenance Personnel Mixing Finishing Direct costs $126,000 $84,000 $105,000 $175,000 Square footage 800 400 1,600 1,200 Number of employees 8 12 24 32 If the step-down method is used to allocate service department costs, and the Maintenance Department is allocated first, calculate the cost allocated from the Maintenance Department to the Mixing Department
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