Question

Rlemer, Inc. has four departments. Information about these departments is listed below. Maintenance is a service department.
Multiple Choice $2,219. $4,200 $3,324 $5,250. $21,000.
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Answer #1

OPTION: $4200

EXPLANATION:

Maintenance costs are allocated based on the floor space occupied by the departments.

therefore,

Total sq. ft of space occupied by other departments = 1150 + 2150 + 2450 = 5750

amount of maintenance cost allocated to cutting department = $21000 x (1150/5750)

= $4200

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