Wizner Company has two service departments, Maintenance and Human Resources. Wizner 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:
Human
Maintenance 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. What amount of costs would be allocated from the Maintenance Department to the Human Resources Department?
Get Answers For Free
Most questions answered within 1 hours.