How much maintenance cost should be allocated to department

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Koreen Manufacturing Co. has three production departments. Koreen allocates maintenance costs to the departments based on their use of machine hours. The maintenance cost for March was $180,000. The departments useage of labour and machine hours in March were:

Department Machine hours Labor hours
A 500 3,000
B 500 5,000
C 800 2,000

How much maintenance cost should be allocated to the department B for March?

A) $50,000
B) $90,000
C) $60,000
D) $64,285

 

Reference no: EM13288413

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