Uses a capital intensive production process


Krusty, Co. uses a capital intensive production process and allocates maintenance costs to the three producing departments.The maintenance cost for April was $100,000.The three departments had the following usage for April:

  • Krusty Burger Department used 500 Machine Hours and 2,000 Direct Labor Hours
  • Ribwich Department used 800 Machine Hours and 5,000 Direct Labor Hours
  • Salad on a Stick Department used 700 Machine Hours and 3,000 Direct Labor Hours

The maintenance cost that should be allocated to the Ribwich Department for April should be?

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Accounting Basics: Uses a capital intensive production process
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