Riemer, Inc. has four departments. Information about these departments is listed below. Maintenance is a service department. If allocated maintenance cost is based on floor space occupied by each of the other departments, compute the amount of maintenance cost allocated to the Cutting Department.
A) $500.
B) $4,500.
C) $3,724.
D) $6,000.
E) $4,153.
B) $4,500.
Cutting: 1,500/6,000 × $18,000 = $4,500
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