Compute the amount of maintenance department expense


Response to the following problem:

The following is a partially completed lower section of a departmental expense allocation spreadsheet for Stoneham. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage.

Compute the amount of Maintenance department expense to be allocated to Fabrication.

                                      Purchasing      Maint.         Fabricaton         Assembly

OPERATING COSTS         $32,000         $18,000       $96,000              $62,000

No. of Purchase orders                                               16                     4

Sq.Ft of Space                                                          3,300                 2,700

 

 

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Cost Accounting: Compute the amount of maintenance department expense
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