The Jason Manufacturing Company has two production departments (millwright and assembly) and three service departments (general factory administration, factory maintenance, and factory development). A summary of costs and other data for each department, prior to allocation of service department costs for the year ended March 30, appears below.

The costs of the general factory administration department, factory maintenance department, and factory development department are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively.

	Millwright	Assembly	General Factory Admin.	Factory Maint.	Factory Devel.
Direct labor costs:	$1,950,000	$2,050,000
Direct material costs:	$3,130,000	$ 950,000
Factory overhead costs:	$1,975,000	$2,510,000	$95,000	$87,000	$65,000
Direct labor hours:	235,980	376,180
Number of employees:	210	255	51	84	30
Sq. footage occupied:	10,000	40,000	2,500	2,300	5,200

Assuming that Jason elects to use the sequential method to distribute service department costs (starting with factory development), what would be the amount of factory development that would be allocated to the factory maintenance department?

a.	$ 9,100.
b.	$ 4,350.
c.	$29,640.
d.	$0.

Answer rating: 100% (QA)

The correct choice is a 9100 as calculated in the following table General Factory Admin ... View the full answer