Reference no: EM132533466

Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all three of the other departments in proportion to the number of employees in each. The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space used by each. Listed below are the operating data for the current period:

                                 Service Depts.              Production Depts.            Payroll Maintenance           Cutting Assembly

Direct costs         $20,400                             $25,500                     $76,500                             $105,400

No. of personnel       15                                    45 Sq. ft. of space     10,000                            15,000

Question 1: The total cost of operating the Maintenance Department for the current period is:

Multiple Choice

Option 1: $14,280.

Option 2: $15,912.

Option 3: $25,500.

Option 4: $29,580.

Option 5: $22,412.