A company has two supporting departments, Maintenance and Information Systems, and two operating departments, the Machining Department and the Assembly Department.
A company has two supporting departments, Maintenance and Information Systems, and two operating departments, the
Machining Department and the Assembly Department. Each department’s overhead costs are shown below.
Information
Overhead costs
$6,300,000
$1,452,150
$4,000,000
$2,000,000
Maintenance hours
–
4,000
6,000
10,000
Information Systems hours
500
–
4,000
500
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