Question

Fredrick Company has two service departments (cafeteria and maintenance). Frederick has two production departments

(assembly and packaging). Frederick uses a step allocation method where cafeteria services is allocated to all departments and maintenance services is allocated to the production departments. All allocations are based on total employees. Cafeteria services has costs of $190,000 and maintenance has costs of $285,000 before any allocations. What amount of maintenance total cost is allocated to the packaging department? Employees are:

Cafeteria Services 5

Maintenance 6

Assembly Department 8

Packaging Department 11

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