CakeCo, Inc. has three operating departments. Information about these departments is listed below. Maintenance is service department at CakeCo that incurred $18,900 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. Mixing Baking Packaging $20,000 Direct costs $32,000 $26,000 Sq. ft. of space 2,100 3,150 1,050 Multiple Choice $9,450. $12,600. $900. $300.

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
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Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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CakeCo, Inc. has three operating departments. Information about these departments is listed below. Maintenance is service department at CakeCo that
incurred $18,900 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.
Mixing
$32,000
Baking
$26,000
Packaging
$20,000
Direct costs
Sq. ft. of space
2,100
3,150
1,050
Multiple Choice
$9,450.
$12,600.
$900.
$300.
Transcribed Image Text:CakeCo, Inc. has three operating departments. Information about these departments is listed below. Maintenance is service department at CakeCo that incurred $18,900 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. Mixing $32,000 Baking $26,000 Packaging $20,000 Direct costs Sq. ft. of space 2,100 3,150 1,050 Multiple Choice $9,450. $12,600. $900. $300.
Multiple Choice
$9,450.
$12,600.
$900.
$300.
$8,400.
Transcribed Image Text:Multiple Choice $9,450. $12,600. $900. $300. $8,400.
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