CakeCo, Incorporated has three operating departments. Information about these departments is listed below. Maintenance is service department at CakeCo that incurred $11.700 of costs during the period. If allocated maintenance cost is based on floor space occupled by each of the operating departments, compute the amount of maintenance cost allocated to the Baking Department. Department Mixing Baking Packaging Multiple Choice O $300 $900 Direct Expenses Square Feet $ 24,000 18,000 12,000 $5,200 1,300 1,950 650

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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CakeCo, Incorporated has three operating departments. Information about these departments is listed below. Maintenance is service department at CakeCo
that incurred $11,700 of costs during the period. If allocated maintenance cost is based on floor space occupied by each of the operating departments.
compute the amount of maintenance cost allocated to the Baking Department
Department
Mixing
Baking
Packaging
Multiple Choice
O
$300
Direct Expenses
$ 24,000
18,000
12,000
$900,0
$5.200
Square Feet
1,300
1,950
650
Transcribed Image Text:CakeCo, Incorporated has three operating departments. Information about these departments is listed below. Maintenance is service department at CakeCo that incurred $11,700 of costs during the period. If allocated maintenance cost is based on floor space occupied by each of the operating departments. compute the amount of maintenance cost allocated to the Baking Department Department Mixing Baking Packaging Multiple Choice O $300 Direct Expenses $ 24,000 18,000 12,000 $900,0 $5.200 Square Feet 1,300 1,950 650
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