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Maintenance costs at Zacksby Company are allocated to the production departments based on area occupied. Maintenance costs of $300,000 are budgeted to maintain a 60,000
Maintenance costs at Zacksby Company are allocated to the production departments based on area occupied. Maintenance costs of $300,000 are budgeted to maintain a 60,000 square foot production area. If the finishing department occupies 25,000 square feet, how much of the maintenance department costs will be allocated to the finishing department?
A) $ 125,000
B) $ 175,000
C) $5,000
D) $100,000
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