Reference no: EM132794221

Company F has two production departments, A and B, and two service departments, janitorial and personnel. Personnel costs are allocated based on number of employees and janitorial costs are allocated based on size of the department in square meters

Department                 No. of Employees           Sq. Meters            Direct Costs
A                                150                     10,000                     $ 750,000
B                           200                          20,000                      600,000
Janitorial                     25                        1,000                       25,000
Personnel                         15                    2,000                      18,000
Total                          390                    33,000                     $1,393,000

problem 1: Under the direct allocation method, what amount of janitorial costs would be allocated to Department B (round to the nearest dollar)?