Calculate the costs allocated to the production departments

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Reference no: EM132501357

The building maintenance department for the Page Manufacturing Company budgets annual costs of $5,877,760 based on the expected operating level for the coming year. The costs are allocated to two production departments. Page is considering two allocation bases for assignment of costs to departments: (1) square footage and (2) direct labor hours. The following data relate to the potential allocation bases:

                                           Production Dept. 1                                  Production Dept. 2

square footage                      32,650                                          39,030

Direct labor hours                   39,030                                           32,650

Question 1: Calculate the costs allocated to the production departments using each allocation base. (Round answers to 0 decimal places, e.g. 5,275. Do not round intermediate calculations.)

Reference no: EM132501357

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