Reference no: EM132958452

Problem 1: Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a step allocation method where the Computer Operations Department is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Computer Operations has costs of $110,000 and Maintenance Services has costs of $130,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Mixing Department? Round to closest whole number (no cents). Employees are:

Computer Operations 4
Maintenance Services 2
Mixing Department 4
Packaging Department 8

Problem 2: Ocean City Kite Company manufactures & sells kites for $6.50 each. The variable cost per kite is $3.00 and the breakeven point is 95,000 kites. Use this information to determine the dollar amount of Ocean City Kite Company's fixed costs. Round to closest whole number (no cents).