Reference no: EM132632732

Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Cafeteria costs.

It has the following information about its two service departments and two production departments, Cutting and Assembly:

                                            Costs                     Square Feet                           Number of Employees

Janitorial Department        $ 450,000                 100                                    20

Cafeteria Department         $ 200,000              10,000                                 10

Cutting Department         $1,500,000             2,000                                     60

Assembly Department         3,000,000            8,000                                     20

Problem 1: How much of the Janitorial Department's $450,000 costs is allocated to the Cutting Department?