Aco has two service department (computer Operations & Maintenance Services). Aco has two production department (mixing Department & Packaging Department.)
Given:Aco has two service department (computer Operations & Maintenance Services). Aco has two
production department (mixing Department & Packaging Department.) Aco uses a direct allocation method where service departments are allocated only to production departments. All allocations are based on total employees. Computer Operations has costs of $160,000 and Maintenance Services has Cost of $120,000 before any allocations
Employee:
Computer Operations 4
Maintenance Services 3
Mixing Department 5
Packaging Department 6
Determine:
Amount of Maintenance services total cost is allocated to the Packaging Department
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