35. The accountant for Milton, Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected: Maintenance Cafeteria Cutting Direct costs 300,000 Number of employees Square metres $50,000 $45,000 $275,000 S 15 10 150 250 1,500 2,000 3,500 4,000 If the direct method is used, maintenance costs allocated to the cafeteria will be a) $28,571.43 b) $15,909 c) $10,000 d) $O Answer: d Difficulty: Easy Learning Objective: Explain how the direct method is used to allocate support costs to operating departments. CPA: Management Accounting 36. The accountant for Milton, Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been cuSupport Departments Operating Maintenance Caf Cutting Direct costs 300,000 Number of employees Square metres $50,000 $45,000 $275,000$ 10 150 250 1,500 2,000 3,500 36. The accountant for Milton, Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected: Operating Maintenance Cafeteria Cutting Direct costs 300,000 Number of $50,000 $45,000 $275,000 $ 10 150 250 Square metres 1,500 2,000 3,500 4,000 If the step-down method is used and maintenance is allocated first, cafeteria costs allocated to packaging will be a) $34,704 b) $55,757 c) $28,125 d) $54,792 Answer: a Difficulty: Medium Learning Objective: Explain how the step-down method is used to allocate support costs to operating departments. 37. The accountant for Milton, Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected: Operating Maintenance Cafeteria Cutting Direct costs 300,000 Number of $50,000 $45.000 $275,000 $ 10 150 250 Square metres 1,500 2,000 3,500 4,000 If the step-down method is used and maintenance is allocated