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Cost Accounting Question -
Krenz Foundry has 3 support departments and 2 operating departments. Support cost and allocation base information is provided below.
Support Departments
Operating Departments
Maintenance Food Service personnel
Casting
Finishing
Direct support cost
$10,000
$20,000
$15,000
Allocation bases:
Employees
10
8
9
20
30
Square feet
2,000
3,000
1,000
10,000
5,000
Manintencance costs are allocated on the basis of square feet, and the other support costs are allocated on the basis of number of employees. Maintenance provides the most services to other support deparments, and food service provides the next most services to other support departments.
If the direct method of allocation is used, calculate the maintenance department cost that will be allocated to:
1) Personnnel
2) Casting
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