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Listen The accountant for Milton, Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet,
Listen The accountant for Milton, Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected: Support Departments Operating Departments Maintenance Cafeteria Cutting Packaging Direct costs $50,000 $45,000 $275,000 $300,000 Number of employees 15 10 150 250 Square feet 1,500 2,000 3,500 4,000 If the direct method is used, maintenance costs allocated to the cafeteria will be $28,571 $0 $10,000 $15,909 Previous Page Next Page Page 15 of 20
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