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Sena Corporation has two production departments Culling and Assembly, and two support departments Maintenance and Cafeteria Total costs occurred in cost centers after the first
Sena Corporation has two production departments Culling and Assembly, and two support departments Maintenance and Cafeteria Total costs occurred in cost centers after the first allocation (primary distribution) are as follows. Production Departments Support Departments Total Cutting Assembly Maintenance Cafeteria | Allocation Totals (S) 25,000 15.000 4 000 5000 49,000 The company uses Simultaneous Equation Method to allocate support departments costs to production departments Support departments costs are allocated as follows Production Departments Support Departments Cutting Assembly Maintenance Cafeteria Cafeteria 0.60 0.25 0 15 Maintenance 0 80 0 15 0.05 Which of the following linear equations represents the lotal cost lo be allocated from Maintenance? (M= total cost to be allocated from Maintenance C= total cost to be allocated from Cafeteria) M= $15,000 + 0.150 B M= $5,000 + 0.050 M=$4.000 + 0.150 M= $25 000+ 0.050
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