The building maintenance department for Advantage Toys budgets annual costs of $4,200,000 based on the expected operating level for the coming year.The costs are allocated to two production departments.The following data relate to the potential allocation bases: $\begin{array}{lll}& \text { Production Dept. A } & \text { Production Dept. B } \
\text { Square footage } & 15,000 & 45,000 \
\text { Direct labor hours } & 25,000 & 50,000
\end{array}$ If Advantage assigns costs to departments based on square footage, how much maintenance cost will be allocated to Production Department A?
A)$1,400,000
B)$1,050,000
C)$1,575,000
D)$2,100,000

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The Answer of The building maintenance department for Advantage Toys budgets annual costs of $4,200,000 based on the expected operating level for the coming year.The costs are allocated to two production departments.The following data relate to the potential allocation bases: $\begin{array}{lll}& \text { Production Dept. A } & \text { Production Dept. B } \
\text { Square footage } & 15,000 & 45,000 \
\text { Direct labor hours } & 25,000 & 50,000
\end{array}$ If Advantage assigns costs to departments based on square footage, how much maintenance cost will be allocated to Production Department A?
A)$1,400,000
B)$1,050,000
C)$1,575,000
D)$2,100,000

The Building Maintenance Department for Advantage Toys Budgets Annual Costs