Question
r Annapolis Company has two service department (Computer Operation & Maintenance Services). Annapolis has two productionsdepartements (Mixing Department & Packaging Department). Annapolis uses a direct
r Annapolis Company has two service department (Computer Operation & Maintenance Services). Annapolis has two productionsdepartements (Mixing Department & Packaging Department). Annapolis uses a direct allocation method where service departements are allocated only to production departements. All allocations are based on total employees. Computer Operations has costs of $190,000 and Maintenance Services has costs of $200,000 before any allocations. What amount of Maintenance services total cost is allocated to the Packaging Department? Employees are: Computer Operations 2, Maintenance Services 2, Mixing Department 8, Packaging Department 4.
Do I allocate the total maintenance costs to the packaging department only or to all other departments?
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