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The managers of Rochester Manufacturing are discussing ways to allocate the cost of service departments such as Quality Control and Maintenance to the production
The managers of Rochester Manufacturing are discussing ways to allocate the cost of service departments such as Quality Control and Maintenance to the production departments. To aid them in this discussion, the controller has provided the following information: Quality Maintenance Machining Assembly Total Control Budgeted overhead costs before allocation $350,000 Budgeted machine hours Budgeted direct labor hours Budgeted hours of service: Quality control Maintenance 10,000 $200,000 $400,000 $300,000 $1,250,000 50,000 50,000 25,000 25,000 7,000 21,000 7,000 35,000 18,000 12,000 40,000 If Rochester Manufacturing uses the step-down method of allocating service costs beginning with quality control, the maintenance costs allocated to the assembly department would be:
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