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The accountant for Sam Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria

The accountant for Sam Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected:
Support Departments Operating Departments
Maintenance Cafeteria Cutting Packaging
Direct costs $50,000 $45,000 $275,000 $300,000
Number of employees 1510150250
Square feet 1,5002,0003,5004,000
If the direct method is used, the total cost (including allocations) for the packaging department will be
$26,667
$355,250
$54,792
$354,792 I need help with explanation. Thanks!

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