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Human resources service Janitorial service Sewing Production Packaging Production Employees 3 3 9 15 Square footage 2,000 100 20,000 10,000 Cost incurred $125,000 $85,000 $1,000,000

Human resources service

Janitorial service

Sewing Production

Packaging Production

Employees

3

3

9

15

Square footage

2,000

100

20,000

10,000

Cost incurred

$125,000

$85,000

$1,000,000

$600,000

Using the direct method, allocate the service department costs to production. The human resource costs are to be allocated based on employees, and the janitorial costs are to be allocated based on the square footage. Construct a cost allocation analysis (20 points)

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