| Service Department | Operating Department | |||
| Custodial | Repair | Production | Finishing | |
| Departmental costs | $ 5,124 | $ 7,252 | $ 52,000 | $ 62,000 |
| Square feet | 200 | 2,200 | 3,700 | |
| Number of repair requests | 250 | 100 | ||
|
The company does not distinguish between fixed and variable service department costs. Custodial costs are allocated on the basis of square feet occupied. Repair costs are allocated on the basis of the number of repair requests. Assume Custodial costs are allocated first. |
|
Assume Grand uses the step down allocation method. After all allocations, how much of the company’s total overhead cost will be charged to the Finishing Department for the coming year? (Round your answer to the nearest dollar amount.) |
| $73,947 | |
| $65,108 | |
| $67,228 | |
| $69,586
Plz show the working. otherewise, no points |