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Calculate the binding department

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Question - Alpha Company has two service departments (Cafeteria Services & Maintenance Services). Alpha has two production departments (Printing Department & Binding Department.) Cafeteria Services has costs of $140,000 and are allocated to production departments based on their number of employees. Employees are:

Cafeteria Services 2

Maintenance Services 2

Printing Department 4

Binding Department 8

Alpha uses the step method for service cost allocation. Use this information to calculate for Alpha Company the dollar amount of its Cafeteria costs that are to be absorbed by: (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units)

1. Calculate the Printing Department.

2. Calculate the Binding Department.

Reference no: EM132643063

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