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Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis 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 $140,000 and Maintenance Services has costs of $170,000 before any allocations.
Question 1: What amount of Maintenance Services total cost is allocated to the Packaging Department? (round to closest whole dollar)
Employees are:
Computer Operations 3
Maintenance Services 3
Mixing Department 8
Packaging Department 7
for the question below the right answer is chowever my answer is b.not sure how expense for 2004 is 150k and not 30
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