Reference no: EM132441014

Question - Maersk Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a direct allocation method where service departments are allocated only to production departments. All allocations are based on total employees. Computer Operations has costs of $195,000 and Maintenance Services has costs of $200,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Packaging Department?

Employees are:

Computer Operations 2

Maintenance Services 2

Mixing Department 7

Packaging Department 5