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Mrtina inc has two service departments and two production

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Reference no: EM13590406

Martina, Inc. has two service departments and two production departments. The company allocates Building Maintenance cost on the basis of square footage and believes that Building Maintenance provides more service than Human Resources.The square footage occupied by each department follows.

  • Human Resources 6,000
  • Building Maintenance 13,000
  • Machining 18,000
  • Assembly 26,000

Assuming use of the step-down method, over how many square feet would the Building Maintenance cost be allocated (i.e., spread)?

  • 19000
  • 44000
  • 50000
  • 63000

Reference no: EM13590406

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