Cameron Company has two production departments and a maintenance department. In addition, the company keeps other costs for the general plant in a separate account. The estimated cost data for Year 1 follow:

The general plant services the three departments in the following proportions: 50 percent (Department 1); 30 percent (Department 2); 20 percent (Maintenance). Allocate maintenance costs based on maintenance hours. Allocate maintenance department and general plant costs to the production departments. Use the step method, starting with general plantcosts.

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Production Dept. 1 Production Dept. 2 Cost Direct Labor Indirect Labor Indirect Ma Miscellaneous Maintenance General Plant $100,000 56,000 18,000 6,000 $180,000 $60,000 28,000 14,000 10,000 $112,000 $45,000 1,800 3,200 $50,000 2 $40,000 16,000 10,000 $66,000 Maintenance 16,000 Hours 24,000 Hours