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Question - Alpha Company has two service departments (Cafeteria Services & Maintenance Services). Alpha has two production departments (Printing Department & Binding Department.) Cafeteria Services has costs of $140,000 and are allocated to production departments based on their number of employees. Employees are:
Cafeteria Services 2
Maintenance Services 2
Printing Department 4
Binding Department 8
Alpha uses the step method for service cost allocation. Use this information to calculate for Alpha Company the dollar amount of its Cafeteria costs that are to be absorbed by: (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units)
1. Calculate the Printing Department.
2. Calculate the Binding Department.
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