The Reeve Ltd Manufacturing Company Ltd has two production departments (Assembly and Finishing) and two support departments (Repairs and Engineering). The usage of the two support departments in 20X2 is as follows:

Service provided by:	Service provided to:
Repairs	Engineering	Assembly	Finishing
Repairs	-	10%	60%	30%
Engineering	20%	-	40%	40%

The budgeted costs in the support departments of 20X2 were as follows:

Repairs $90,000

Engineering $50,000

Using the direct method, what is the Engineering Department cost allocated to the Assembly Department?

Answer rating: 100% (QA)

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