Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly Department & Packaging Department.) 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 $195,000 and Maintenance has costs of $255,000 before any allocations. What amount of Maintenance total cost is allocated to the Packaging Department? (round to closest whole dollar) Employees are: Cafeteria Services Maintenance 5 8. Assembly Department Packaging Department

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Frederick Company has two service departments (Cafeteria Services &
Maintenance). Frederick has two production departments (Assembly Department &
Packaging Department.) 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
$195,000 and Maintenance has costs of $255,000 before any allocations. What amount of
Maintenance total cost is allocated to the Packaging Department? (round to closest whole
dollar) Employees are:
Cafeteria Services
Maintenance
5
8.
Assembly Department
Packaging Department 7
3.
Transcribed Image Text:Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly Department & Packaging Department.) 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 $195,000 and Maintenance has costs of $255,000 before any allocations. What amount of Maintenance total cost is allocated to the Packaging Department? (round to closest whole dollar) Employees are: Cafeteria Services Maintenance 5 8. Assembly Department Packaging Department 7 3.
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