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tigersroar04
Mar 26, 2007, 09:46 PM
forming assembly packaging maintenance computer services

machine 12,000 5,000 3,000 800 0
hours

number 14 20 11 15 8
of
computers

Annual $450,000 $800,000 $250,000 $100,000 $90,000
cost

maintenance supports only forming, assembly packaging (production departments)
computer services supports maintenance packaging assembly and forming

the question is using the step method how much cost is allocated to the forming department from the maintenance department? i know the answer is $73,500
i got it correct once a few days ago, but now i cant remember how i did it.

the second question is using the step method, how much cost is allocated to the assembly department from both the computer services and maintenance departments? the answer for this one is 60,625

thanks