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Flamingos, Incorporated has two service departments and two operating (production) departments. Administrative Department costs are allocated to the Assembly and Packaging departments based on the
Flamingos, Incorporated has two service departments and two operating (production) departments. Administrative Department costs are allocated to the Assembly and Packaging departments based on the number of employees, and Maintenance Department costs are allocated to the Assembly and Packaging departments based on square feet occupied. Data for these departments follows: Number Employees Square Feet Department Administrative Maintenance Assembly Packaging Direct Expenses $ 30,000 15,000 70,000 45,000 6 2,000 3,000 4 The total amount of service department costs (Administrative and Maintenance) that would be allocated to the Packaging Department is
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