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9. VelCraft allocates costs from its payroll department and the maintenance department to its production departments using the direct method of allocation. Payroll department costs

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9. VelCraft allocates costs from its payroll department and the maintenance department to its production departments using the direct method of allocation. Payroll department costs are allocated based on the number of employees in the department and maintenance department costs are allocated based on the number of square feet that the production department occupies within the factory. Information about the departments is presented below: Number of Employees Costs $150,000 $220,000 Department Payroll Maintenance Molding Finishing Packaging Number of Square Feet Occupied 2,000 64,000 100,000 60,000 40,000 What amount of the payroll department costs will be allocated to the packaging department? A) $23,438 B) $73,333 C) $25,000 D) $36,667

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