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Mad Machinery Ltd. has two support departments (Materials Handling, Maintenance) and two operating departments (Machining, Assembly). The assistant accountant has already calculated the support department
Mad Machinery Ltd. has two support departments (Materials Handling, Maintenance) and two operating departments (Machining, Assembly). The assistant accountant has already calculated the support department costs using reciprocal support cost allocation method, which are $45,000 for Materials Handling and $30,000 for Maintenance. The remaining step is to allocate the support department costs to the operating departments. Based on the above information, the Maintenance cost allocated to Assembly is: Select one: $10,000 $43,750 $21,000 $21,875
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