What amount of the payroll department costs

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Reference no: EM131540733

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

Dept. Payroll (S1) Costs, 135,000, No. of employees 2, no. of sq. ft. occupied 2,000

Dept. Maintenance (S2) Costs, 220,000, No. of employees 8, no. of sq. ft. occupied 64,000

Dept. Molding (P1) No. of employees 64, no. of sq. ft. occupied 100,000

Dept. Finishing (P2) No. of employees 47, no. of sq. ft. occupied 60,000

Dept. Packaging (P3) No. of employees 21, no. of sq. ft. occupied 40,000

Medusa uses the direct method to allocate cost. Roundall answers to the nearest dollar. What amount of the payroll department costs wll be allocated to the molding department?

Reference no: EM131540733

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