Question
The building maintenance department for the Ridgewood Manufacturing Company budgets annual costs of $6,180,300 based on the expected operating level for the coming year. The
The building maintenance department for the Ridgewood Manufacturing Company budgets annual costs of $6,180,300 based on the expected operating level for the coming year. The costs are allocated to two production departments. Ridgewood is considering two allocation bases for assignment of costs to departments: (1) square footage and (2) direct labor hours. The following data relate to the potential allocation bases:
Production Dept. 1Production Dept. 2Square footage32,37043,930Direct labor hours43,93032,370
Calculate the costs allocated to the production departments using each allocation base.(Round answers to 0 decimal places, e.g. 5,275. Do not round intermediate calculations.)
Production Dept. 1Production Dept. 2Square footage$
$
Direct labor hours$
$
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