What amount of the payroll department cost will be allocated

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Madusa Company allocates costs from the payroll department (S1) and the maintenance department (S2) to the molding (P1), finishing (P2), and packaging (P3) departments. Payroll department cost are allocated based on the number of employees in the department and maintenance department costs are allocated based on the number of square feet which the production department occupies within the factory. Information about the departments is presented below:

Department               Cost                 Number of Employees                  Number of square feet occupied

Payroll (S1)             $143,000                    2                                    2,000

Maintenance (S2)      $220,000                   8                                     64,000

Molding (P1)                                              73                                   100,000

Finishing (P2)                                             49                                      60,000

Packaging (P3)                                             24                                  40,000

Medusa uses the direct method to allocate cost. Round all answers to the nearest dollar.

Question 1: What amount of the payroll department cost will be allocated to the molding department?

Reference no: EM132600675

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