Question: Using the sequential method, Thomas Company allocates Maintenance Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of

Using the sequential method, Thomas Company allocates Maintenance Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Maintenance costs before Cafeteria costs. The company has the following information about its two service departments and two production departments, Cutting and Assembly:

	Square Feet	Number of Employees
Maintenance Department	500	20
Cafeteria Department	1,500	10
Cutting Department	1,500	60
Assembly Department	7,000	20

What is the percentage (proportional) usage of the Maintenance Department by the Cutting Department?

a.17.6%

b.15%

c.66.7%

d.14.2%

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