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Charlie Company manufactures a high SPF sunscreen lotion using two producing departments: mixing and bottling. Three service departments support the production departments: maintenance, building and grounds, and cafeteria. Budget data for overhead for the five departments are shown below. Cost drivers are as follows: Maintenance/Machine hours; Building & Grounds/Square feet; Cafeteria/Number of employees.
Service Departments
Producing Departments
Maintenance
Building & Grounds
Cafeteria
Mixing
Bottling
Overhead Costs
$30,000
$70,000
$50,000
$20,000
Number of employees
10
2
3
15
25
Square feet
1,000
3,000
9,000
Machine hours
4,000
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