Brown Company has two service departments,
Maintenance and Personnel. Brown Company also has two
production
departments, Mixing and Finishing. Maintenance costs are
allocated
based on square footage while personnel costs are allocated
based
on number of employees. The following information has been
gathered
for the current year.
“text decoration:underline;”>Maintenance
Personnel
Mixing
Finishing
Direct
costs
$126,000
$84,000
$105,000
$175,000
Square
footage
800
400
1,600
1,200
Number of
employees
8
12
24
32
If the direct method is used to allocate
service department costs, then the total cost of the
Finishing
Department after allocation would be ______________.
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