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Question - Great Book Company has one service department (Maintenance Services). Great Book has two production departments (Printing Department & Binding Department.) Maintenance Services has costs of $180,000 which is allocated to production departments based on their number of employees. Employees are:
Maintenance Services 3
Printing Department 8
Binding Department 6
Great Book uses the direct method for service cost allocation. Use this information to determine for Great Book Company the dollar amount of its maintenance costs that are to be absorbed by the printing department.
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