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Question
Flamingos, Inc. has four departments. The Administrative Department costs are allocated to the other three departments based on the number of employees in each and the Maintenance Department costs are allocated to the Assembly and Packaging Departments based on their occupied space. Data for these departments follows:
Admin. Maintenance Assembly Packaging
Operating costs $30,000 $15,000 $70,000 $45,000
No. of employees 2 6 4
Sq. ft. of space 2,000 3,000
The total amount of the Administrative Department's cost that would eventually be allocated to the Packaging Department is:
A. $4,800.
B. $12,000.
C. $10,000.
D. $18,000.
E. $13,000.
Answer
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