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. HM also allocates depreciation on the factory to all departments on the basis of number of employee positions in the department.
The following data is available for HM:
Mixing: 1,100 square feet of floor space, 200 machine hours used, 30 employees
Baking: 900 square feet of floor space, 500 machine hours used, 24 employees
Maintenance: $49,000 incurred, 4 employees
Cleaning: $23,000, 2 employees
Depreciation on factory: $45,000
How much in total 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. HM also allocates depreciation on the factory to all departments on the basis of number of employee positions in the department. 
The following data is available for HM:
Mixing: 1,100 square feet of floor space, 200 machine hours used, 30 employees
Baking: 900 square feet of floor space, 500 machine hours used, 24 employees
Maintenance: $49,000 incurred, 4 employees
Cleaning: $23,000, 2 employees
Depreciation on factory: $45,000
How much in total 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. HM also allocates depreciation on the factory to all departments on the basis of number of employee positions in the department. 
The following data is available for HM:
Mixing: 1,100 square feet of floor space, 200 machine hours used, 30 employees
Baking: 900 square feet of floor space, 500 machine hours used, 24 employees
Maintenance: $49,000 incurred, 4 employees
Cleaning: $23,000, 2 employees
Depreciation on factory: $45,000
How much in total costs should be allocated to the Mixing department?

Hardluck Manufacturing Produces Building Materials for Local Construction Contractors