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What amount of administration costs is allocated

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Question - Stephanie Company has two production departments: D and J. Stephanie also has 3 service departments: Personnel, Administration, and Shipping. Shipping costs are allocated on the basis of number of packages, while Personnel and Administration costs are allocated using number of employees. Assume that the ranking of the benefits provided is in the order listed below.

Department

Costs

Employees

# of Packages

Personnel

$600,000

25

7,000

Administration

800,000

20

9,000

Shipping

700,000

12

27,500

D

500,000

10

5,000

J

400,000

15

6,000

Refer to Stephanie Company. Using the step method, what amount of Administration costs is allocated to Department D (rounded to the nearest $)? (Hint: complete the process to allocate Personnel costs first)

a. $ 97,561

b. $216,216

c. $273,115

d. $409,673

Reference no: EM132109488

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