Question
Frederick Company has two service departments (Cafeteria Services & Maintenance).Frederick has two production departments (Assembly Department & Packaging Department.)Frederick uses a step allocation method where
Frederick Company has two service departments (Cafeteria Services & Maintenance).Frederick has two production departments (Assembly Department & Packaging Department.)Frederick uses a step allocation method where Cafeteria Services is allocated to all departments and Maintenance Services is allocated to the production departments.All allocations are based on total employees.Cafeteria Services has costs of $210,000 and Maintenancehas costs of $155,000 before any allocations.What amount of Maintenance total cost is allocated to the Packaging Department?(round to closest whole dollar) Employees are:
Cafeteria Services5
Maintenance3
AssemblyDepartment11
Packaging Department10
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