Question
The building maintenance department for the Page Manufacturing Company budgets annual costs of $5,877,760 based on the expected operating level for the coming year. The
The building maintenance department for the Page Manufacturing Company budgets annual costs of $5,877,760 based on the expected operating level for the coming year. The costs are allocated to two production departments. Page is considering two allocation bases for assignment of costs to departments: (1) square footage and (2) direct labor hours. The following data relate to the potential allocation bases:
Production Dept. 1 Production Dept. 2
square footage 32,650 39,030
Direct labor hours 39,030 32,650
Calculate the costs allocated to the production departments using each allocation base.(Round answers to 0 decimal places, e.g. 5,275. Do not round intermediate calculations.)
Square footage for Production Department 1 and 2
Direct Labor hours for Production Department 1 and 2
Can you please show your work. Thank you!
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