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6. (20 pts.) Cougar Company has two service departments, Maintenance and Cafeteria, as well as two production departments, Mixing and Finishing. Maintenance Department costs are
6. (20 pts.) Cougar Company has two service departments, Maintenance and Cafeteria, as well as two production departments, Mixing and Finishing. Maintenance Department costs are allocated based on direct labor hours and Cafeteria Department costs are allocated based on number of employees. The following data are available: Direct costs Direct labor hours Number of employees Maintenance $7,000 180 36 Cafeteria $2,800 50 120 Mixing Finishing $400 10 60 $1,200 20 540 Assume the step-down method of allocating service departments' costs is used. The Maintenance Department renders the greatest service and is allocated first. A) Determine the total costs of the Mixing Department after allocating the costs of B) Determine the total costs of the Finishing Department after allocating thecosts the service departments. of the service departments
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