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. Maintenance Cutting Assembly PackagingDirect costs$18,000 $30,000 $70,000 $45,000 Sq. ft. of space 500 1,500 2,000 2,500 No. of employees 2 3 16 4
A. $4,153.
B. $500.
C. $6,000.
D. $3,724.
E. $4,500.
Answer: E
Business
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