How much maintenance cost should be allocated


Koreen Manufacturing Co. has three production departments. Koreen allocates maintenance cost to the departments based on their use of machine hours. The maintenance cost for March was $180,000. The departments usage of labor and machine hours in March were:
Department Machine Hours Labor Hours
A 500 3,000
B 500 5,000
C 800 2,000

How much maintenance cost should be allocated to the department B for March?

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Accounting Basics: How much maintenance cost should be allocated
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