Question
J.J company has two service departments, maintenance and human resources. J.J. company also has two production departments, mixing and finishing. maintenance costs are allocated based
J.J company has two service departments, maintenance and human resources. J.J. company also has two production departments, mixing and finishing. maintenance costs are allocated based on square footage while human resources costs are allocated based on number of employees. the following information has been gathered for the current year:
maintenance human resources mixing finishing direct costs $50,400 $33,600 $42,000 $70,000
square footage 1,600 800 3,000 2,000
number of employees 16 24 40 60
if the direct method is used to allocate service department costs, then the cost allocated from the maintenance department to the mixing department is ________.
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