Question

Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a step allocation method where the Computer Operations Department is allocated to all departments and Maintenance Services is allocated to the production departments.  All allocations are based on total employees. Computer Operations has costs of $125,000 and Maintenance Services has costs of $130,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Mixing Department? (round to closest whole dollar) Employees are:

            Computer Operations 2

            Maintenance Services 2

Mixing Department 6

Packaging Department 5

Answer 1

SA Service Department 1 Production Department Computer maintenance Services Packaging Depos (mixing h, 3.000X6] $13000x westorom 59060 opreasin) 12) Emp 2 $125,000x215 =$16,467 $125,000 X 2 $1,25,000x63 15 $ 1,25,000 X 53 $ 41,667 $16 667 450.000 Hence, Maintenance Department is services total cost is $ 70, 90g (Round off). Allocated to the mixing