Reference no: EM132446434

Question - Given: Aco has two service department (computer Operations & Maintenance Services). Aco has two production department (mixing Department & Packaging Department.) Aco uses a direct allocation method where service departments are allocated only to production departments. All allocations are based on total employees. Computer Operations has costs of $160,000 and Maintenance Services has Cost of $120,000 before any allocations.

Employee:

Computer Operations 4

Maintenance Services 3

Mixing Department 5

Packaging Department 6

Determine Amount of Maintenance services total cost is allocated to the Packaging Department.