Reference no: EM131801558

Problem

The production departments at Chan Corporation occupy a total area of 600,000 square feet. Heating costs total $900,000 and are allocated based on the area that each department occupies. The finishing department occupies 30,000 square feet and the packaging department occupies 20,000 square feet. What amount of heating cost will be allocated to the finishing and packaging departments, respectively?

A $30,000 and $20,000
B $20,000 and $15,000
C $60,000 and $40,000
D $45,000 and $30,000