Hardluck Manufacturing produces building materials for local construction contractors. HM has 2 production departments (Mixing and Baking) and 2 service departments (Maintenance and Cleaning). Maintenance costs are allocated based on machine hours used. Cleaning costs are allocated based on square feet of floor space.
The following data is available for HM:
Mixing: 1,100 square feet of floor space, 200 machine hours used
Baking: 900 square feet of floor space, 500 machine hours used
Maintenance costs incurred: $49,000
Cleaning costs incurred: $23,000
How much total support department costs should be allocated to the Mixing department?

Question

Hardluck Manufacturing produces building materials for local construction contractors. HM has 2 production departments (Mixing and Baking) and 2 service departments (Maintenance and Cleaning). Maintenance costs are allocated based on machine hours used. Cleaning costs are allocated based on square feet of floor space. 
The following data is available for HM:
Mixing: 1,100 square feet of floor space, 200 machine hours used
Baking: 900 square feet of floor space, 500 machine hours used
Maintenance costs incurred: $49,000
Cleaning costs incurred: $23,000
How much total support department costs should be allocated to the Mixing department?

Quizplus · Accepted Answer

The Answer of Hardluck Manufacturing produces building materials for local construction contractors. HM has 2 production departments (Mixing and Baking) and 2 service departments (Maintenance and Cleaning). Maintenance costs are allocated based on machine hours used. Cleaning costs are allocated based on square feet of floor space. 
The following data is available for HM:
Mixing: 1,100 square feet of floor space, 200 machine hours used
Baking: 900 square feet of floor space, 500 machine hours used
Maintenance costs incurred: $49,000
Cleaning costs incurred: $23,000
How much total support department costs should be allocated to the Mixing department?

Hardluck Manufacturing Produces Building Materials for Local Construction Contractors