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San Juan Minerals (SJM) has two service departments and two operating departments. Operating data for these departments for last year are as follows: Departmental costs
San Juan Minerals (SJM) has two service departments and two operating departments. Operating data for these departments for last year are as follows: Departmental costs Machine hours Number of emp loyees Service Departments Operat ing Departments Maintenance Cafeteria Mining Process ing $48,000 $45,000 $70,000 $130,000 9,000 360 2,000 1,000 1,000 400 40 30 Costs of the Maintenance Department are allocated on the basis of machine hours. Cafeteria costs are allocated on the basis of number of employees. SJM does not distinguish between variable and fixed overhead costs. Assume that SJM uses the step-down method to allocate service department costs, starting with Maintenance. The total overhead allocated from Maintenance to Mining would be closest to
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