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Question 16 (3 points) The Interwoven Company uses the STEP method to allocate service department cost to production departments, with the Human Resources department allocated
Question 16 (3 points) The Interwoven Company uses the STEP method to allocate service department cost to production departments, with the Human Resources department allocated first. The costs of the Human Resource department are allocated based on number of employees. The costs of the Maintenance department are allocated based on square footage of floor space. Information on the departments and costs are as follows: Employees Department cost Floor space 500 S Human Resources 80,000 230,000 18 2000 Maintenance Production department A 875,000 24 24.000 1201 Production department B 942,000 36.000 How much cost would be allocated from the MAINTENANCE DEPARTMENT to PRODUCTION DEPARTMENT A? Your calculations may be rounded differently than mine. Select the answer which is closest to your calculation A) $88,320 B) $91,240 C) $92,000 D) $96,830
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