Hardluck Manufacturing produces building materials for local construction contractors. HM has two production departments (Mixing and Baking) and two service departments (Maintenance and Cleaning). Maintenance costs are allocated based on machine hours used. Cleaning costs are allocated based on square feet of floor space.
The following data is available for HM:
Mixing: 1,100 square feet of floor space, 200 machine hours used
Baking: 900 square feet of floor space, 500 machine hours used
Maintenance costs incurred: $49,000
Cleaning costs incurred: $23,000
How much of the Cleaning costs should be allocated to the Baking department?

Question

Hardluck Manufacturing produces building materials for local construction contractors. HM has two production departments (Mixing and Baking) and two service departments (Maintenance and Cleaning). Maintenance costs are allocated based on machine hours used. Cleaning costs are allocated based on square feet of floor space. 
The following data is available for HM:
Mixing: 1,100 square feet of floor space, 200 machine hours used
Baking: 900 square feet of floor space, 500 machine hours used
Maintenance costs incurred: $49,000
Cleaning costs incurred: $23,000
How much of the Cleaning costs should be allocated to the Baking department?

Quizplus · Accepted Answer

The Answer of Hardluck Manufacturing produces building materials for local construction contractors. HM has two production departments (Mixing and Baking) and two service departments (Maintenance and Cleaning). Maintenance costs are allocated based on machine hours used. Cleaning costs are allocated based on square feet of floor space. 
The following data is available for HM:
Mixing: 1,100 square feet of floor space, 200 machine hours used
Baking: 900 square feet of floor space, 500 machine hours used
Maintenance costs incurred: $49,000
Cleaning costs incurred: $23,000
How much of the Cleaning costs should be allocated to the Baking department?

Hardluck Manufacturing Produces Building Materials for Local Construction Contractors