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Selecting an Allocation Base for Departmental Costs - Zarmerter, Inc., is looking for an appropriate allocation base to allocate personnel department costs totaling_$5_00,M. Service department
Selecting an Allocation Base for Departmental Costs - Zarmerter, Inc., is looking for an appropriate allocation base to allocate personnel department costs totaling_$5_00,M. Service department costs are allocated to three production departments: Forming, Sanding, and Finishing. Management is considering two allocation bases: number of employees and amount of space occupied. Possible Allocation Base Finishing Space Occu pied (m2) 2,500 2,000 _ 1. Calculate the amount of personnel department costs allocated to each of the production departments using each allocation base. 2. Which allocation base do you think is most reasonable? Explain why do you think so
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