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What amount of maintenance services total cost is allocated

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Reference no: EM132985123

Problem 1: Belfort Company has two service departments (Computer Operations & Maintenance Services). Belfort has two production departments (Covering Department & Shipping Department.) Belfort uses a step allocation method where the Computer Operations Department is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Computer Operations has costs of $130,000 and Maintenance Services has costs of $190,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Covering Department? Round to closest whole number (no cents). Employees are:

Computer Operations 2
Maintenance Services 4
Covering Department 7
Shipping Department 6

Reference no: EM132985123

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