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Stevie Company Has Two Service Departments,Maintenance and Human Resources If the Direct Method Is Used to Allocate Service Department

Question 80

Multiple Choice

Stevie Company has two service departments,Maintenance and Human Resources.Stevie 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  Maintenlance  Resources  Mixing  Finishing  Direct costs $50,400$33,600$42,000$70,000 Square footage 1,6008003,0002,000 Number of employees 16244060\begin{array}{llll}&&\text { Human }\\&\text { Maintenlance }&\text { Resources } & \text { Mixing } & \text { Finishing } \\\text { Direct costs } & \$ 50,400 & \$ 33,600 & \$ 42,000 & \$ 70,000 \\\text { Square footage } & 1,600 & 800 & 3,000 & 2,000 \\\text { Number of employees } & 16 & 24 & 40 & 60\end{array}
If the direct method is used to allocate service department costs,then the cost allocated from the Maintenance Department to the Mixing Department is ________.


A) $20,160
B) $25,200
C) $30,240
D) $50,400

Correct Answer:

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