Question - Riemer, Inc. has four departments. Information about these departments is listed below. Maintenance is a service department. If allocated maintenance cost is based on floor space occupied by each of the other departments, compute the amount of maintenance cost allocated to the Cutting Department.
Maintenance Cutting Assembly Packaging
Direct costs $18,000 $30,000 $70,000 $45,000
Sq. ft. of space 500 1,500 2,000 2,500
No. of employee 2 3 16 4
$500.
$4,500.
$3,724.
$6,000.
$4,153.