Mitz company has two service departments, maintenance and human resources. marvelous company also has two production...
Mitz company has two service departments, maintenance and human resources. marvelous company also has two production departments, mixing and finishing. maintenance costs are allocated based on square footage while human resources costs are allocated based on number of employees. the following information has been gathered for the current year:
maintenance human resources mixing finishing
direct costs $50,400 $33,600 $42,000 $70,000
square footage 1,600 800 3,200 2,400
number of employees 16 24 48 64
assume the step-down method is used to allocate service department costs and the maintenance department is allocated first. then the amount of cost allocated from the human resources department to the maintenance department would be ________.
Homework Answers
Allocation
| Maintenance | Human resources | Mixing | Finishing | |
| Direct cost | 50400 | 33600 | 42000 | 70000 |
| Allocation of maintenance | -50400 | 6300 | 25200 | 18900 |
| Allocation of human resources | -39900 | 17100 | 22800 | |
amount of cost allocated from the human resources department to the maintenance department would be $0
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