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The Maryville Construction Company occupies 105,800 square feet for construction of mobile homes. There are two manufacturing departments, finishing and assembly, and four service departments
The Maryville Construction Company occupies 105,800 square feet for construction of mobile homes. There are two manufacturing departments, finishing and assembly, and four service departments labeled S1, S2, S3, and S4. Information relevant to Maryville is as follows:
Allocation | |||||||
Department | Area used | S1 | S2 | S3 | S4 | Finishing | Assembly |
S1 | 19,130 | --- | 0.20 | 0.10 | --- | 0.10 | 0.60 |
S2 | 4,785 | --- | --- | 0.40 | 0.40 | --- | 0.20 |
S3 | 10,100 | 0.20 | 0.20 | --- | 0.30 | 0.20 | 0.10 |
S4 | 4,785 | 0.20 | 0.10 | 0.20 | --- | 0.30 | 0.20 |
Finishing | 30,150 | --- | --- | --- | --- | --- | --- |
Assembly | 36,850 | --- | --- | --- | --- | --- | --- |
Rent paid for the area used is $736,000. How much rent would be charged to S4 using the direct method of allocation?
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