Bricks and Mortar Manufacturing produces building materials for local construction contractors. BMM has 2 production dep
Posted: Wed Mar 09, 2022 8:20 am
Bricks and Mortar Manufacturing produces building materials for
local construction contractors. BMM has 2 production departments
(Mixing and Firing) and 2 service departments (Maintenance and
Cleaning). Maintenance costs are allocated based on machine hours
used. Cleaning costs are allocated based on square feet of floor
space. BMM also allocates depreciation on the factory to all
departments on the basis of number of employee positions in the
department.
The following data is available for BMM:
Mixing: 600 square feet of floor space, 200 machine hours
used, 10 employees
Firing: 400 square feet of floor space, 500 machine hours
used, 5 employees
Maintenance: $4,900 incurred, 4 employees
Cleaning: $2,300, 6 employees
Depreciation on factory: $4,500
How much in total costs should be allocated to the Mixing
department?
local construction contractors. BMM has 2 production departments
(Mixing and Firing) and 2 service departments (Maintenance and
Cleaning). Maintenance costs are allocated based on machine hours
used. Cleaning costs are allocated based on square feet of floor
space. BMM also allocates depreciation on the factory to all
departments on the basis of number of employee positions in the
department.
The following data is available for BMM:
Mixing: 600 square feet of floor space, 200 machine hours
used, 10 employees
Firing: 400 square feet of floor space, 500 machine hours
used, 5 employees
Maintenance: $4,900 incurred, 4 employees
Cleaning: $2,300, 6 employees
Depreciation on factory: $4,500
How much in total costs should be allocated to the Mixing
department?