Princess cruise lines has the following service departments

Reference no: EM13451910

Princess Cruise Lines has the following service departments; concierge, valet, and maintenance. Expenses for these departments are allocated to Mediterranean and Trans-Atlantic cruises. Expenses for the departments are totaled (both variable and fixed components are combined) and as follows:

Concierge $2,500,000

Valet $1,750,000

Maintenance $4,250,000

The sea miles logged are 6,000,000 for the Mediterranean and 18,000,000 for the Trans-Atlantic voyages.

Required:

Based upon the sea miles logged, allocate the service department costs

Reference no: EM13451910

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