Select the basis for manufacturing cost allocation. (Obj. 3).

The Gracie Dish Corporation allocates Building Services Department overhead on the basis of the amount of floor space occupied by each producing department in the factory. The Mixing Department occupies 4,000 square feet, the Molding Department occupies 6,000 square feet, and the Finishing Department occupies 10,000 square feet. Calculate the amount that should be allocated to each of these producing departments based on the square footage occupied if the Building Services Department incurs $75,400 in overhead costs.

 LO.1