The costs of the general factory administration department, factory maintenance department, and factory cafeteria are allocated on
Question:
The costs of the general factory administration department, factory maintenance department, and factory cafeteria are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively.
Fabrication | Assembly | General Factory Admin. | Factory Maint. | Factory Cafeteria | |
Direct labor costs: | $1,950,000 | $2,050,000 | |||
Direct material costs: | $3,130,000 | $ 950,000 | |||
Factory overhead costs: | $1,650,000 | $1,850,000 | $80,000 | $67,500 | $58,000 |
Direct labor hours: | 237,690 | 387,810 | |||
Number of employees: | 160 | 128 | 20 | 42 | 25 |
Sq. footage occupied: | 20,000 | 30,000 | 2,400 | 2,000 | 4,800 |
Assuming that Lucas elects to distribute service department costs to production departments using the direct distribution method, the amount of factory maintenance department costs that would be allocated to the fabrication department would be (round all final calculations to the nearest dollar).
College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen