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The production departments at Chan Corporation occupy a total area of 100,000 square feet. Heating costs total $400,000 and are allocated based on the area
The production departments at Chan Corporation occupy a total area of 100,000 square feet. Heating costs total $400,000 and are allocated based on the area that each department occupies. The finishing department occupies 30,000 square feet and the packaging department occupies 20,000 square feet. What amount of heating cost will be allocated to the finishing and packaging departments, respectively? b) $240,000 and $160,000 d) $45,000 and $30,000 c) $200,000 and $200,000 a) $120,000 and $80,000 The Maintenance department of the Ward Steel Company provides repairs and periodic maintenance for machinery at the mill with an annual budget of $1,200,000. There are four departments in the production division of the mill, Rolling, Extruding, Coating and Finishing. Last year the departments logged the following machine hours of operation Rolling 100,000 hours Extruding 50,000 hours Coating 25,000 hours Finishing 25,000 hours If costs are allocated based upon machine hours how much is allocated to the Coating department? b) $600,000 a) $150,000 d) $75,00 c) $300,000 Question 8 of 8 Question 8 5 points Save Answer The Human Resource department of the Ward Steel Company maintains pay records along with other required record keeping for all company employees. It has an annual budget of $400,000. Of the 600 employees, the Maintenance department has 60 employees. What is the cost allocation of Human Resources to the Maintenance department? a) $40,000 d) $400,000 c) $120,000 b) $60,000
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