The Less is More has a cleaning department and a HR department that provide services to...
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The Less is More has a cleaning department and a HR department that provide services to three operations departments (machining, assembly and finishing). The cleaning department's costs are allocated based on floor space and the HR costs are allocated based on number of employees. The company uses the direct method for allocating support department costs HR Cleaning Machining Assembly Finishing Budgeted overhead 125,000 15,000 costs ($) Space (sq m) 1,000 3,500 20,000 30,000 50,000 No. of employees 10 5 25 45 30 Using the information in the above table, calculate the amount of overhead that is allocated from the cleaning department to the assembly department. The Less is More has a cleaning department and a HR department that provide services to three operations departments (machining, assembly and finishing). The cleaning department's costs are allocated based on floor space and the HR costs are allocated based on number of employees. The company uses the direct method for allocating support department costs HR Cleaning Machining Assembly Finishing Budgeted overhead 125,000 15,000 costs ($) Space (sq m) 1,000 3,500 20,000 30,000 50,000 No. of employees 10 5 25 45 30 Using the information in the above table, calculate the amount of overhead that is allocated from the cleaning department to the assembly department.
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