Reference no: EM131639662

Question - Riemer, Inc. has four departments. Information about these departments is listed below. Maintenance is a service department. If allocated maintenance cost is based on floor space occupied by each of the other departments, compute the amount of maintenance cost allocated to the Cutting Department.

Maintenance Cutting Assembly Packaging

Direct costs $18,000 $30,000 $70,000 $45,000

Sq. ft. of space 500 1,500 2,000 2,500

No. of employee 2 3 16 4

$500.

$4,500.

$3,724.

$6,000.

$4,153.