The cost of operating the Maintenance Department is to be allocated to four production departments based on the floor space each occupies

Finance Sep 25, 2020

The cost of operating the Maintenance Department is to be allocated to four production departments based on the floor space each occupies. Department A occupies 900m^2 ?; Department? B, 900m^2 ?; Department? C, 100m^2 ?; and Department? D, 500m^2 . If the July cost was ?$39?,600 how much of the cost of operating the Maintenance Department should be allocated to each production? department?

Expert Solution

Department A = 900m^2 ?

Department? B = 900m^2

Department? C = 100m^2 ?

Department? D = 500m^2

Total = 2400

Department A = (900/2400)*39600

= 14850

Department B = (900/2400)*39600

= 14850

Department C = (100/2400)*39600

= 1650

Department D = (500/2400)*39600

= 8250

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