(TCO 6) The building maintenance department for Jones Manufacturing Company budgets annual costs of $4,200,000 based on the expected operating level for the coming year. The costs are allocated to two production departments. The following data relate to the potential allocation bases:
|
Square footage |
Production Detpt. 1 |
Production Dept. 2 |
|
Direct labor hours |
15,000 |
45,000 |
|
Direct labor hours |
25,000 |
50,000 |
If Jones assigns costs to departments based on square footage, how much total costs will be allocated to Production Department 1?