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Franklin Corporation has three operating departments (Fabricating, Assembly, and Finishing) and two service departments (Custodial and Administrative). The following information has been provided: Fabricating Admin
Franklin Corporation has three operating departments (Fabricating, Assembly, and Finishing) and two service departments (Custodial and Administrative). The following information has been provided: Fabricating Admin $ 400,000 Assembly Finishing Custodial $ 250,000 10 Dept Costs # employees sq ft 80 30,000 100 35,000 60 20,000 15,000 Allocations are based on the following: Custodial: Square feet Administrative: Number of employees Required: Franklin has been approached by Sparkle Cleaning to outsource the custodial service. Assuming all costs are variable, what is the relevant cost of the custodial department to compare with the Sparkle Cleaning bid
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