Riemer, Inc. has four departments. Information about these departments is listed below. Maintenance is a service department. If allocated maintenance cost is based on floor space occupied by each of the other departments, compute the amount of maintenance cost allocated to the Cutting Department.

	Maintenance	Cutting	Assembly	Packaging
Direct costs	$18,000	$30,000	$70,000	$45,000
Sq. ft. of space	500	1,500	2,000	2,500
No. of employees	2	3	16	4

		$500.
		$4,500.
		$3,724.
		$6,000.
		$4,153.

 

Canfield Technical School allocates administrative costs to its respective departments based on the number of students enrolled, while maintenance and utilities are allocated per square feet of the classrooms. Based on the information below, what is the total amount allocated to the Welding Department (rounded to the nearest dollar) if administrative costs for the school were $50,000, maintenance fees were $12,000, and utilities were $6,000?

Department	Students	Classrooms
Electrical	120	10,000 sq. ft.
Welding	70	12,000 sq. ft.
Accounting	50	8,000 sq. ft.
Carpentry	40	6,000 sq. ft.
Total	280	36,000 sq. ft.

		$0.
		$17,000.
		$18,500.
		$22,667.
		$30,000.