Cost Accounting Question -
Krenz Foundry has 3 support departments and 2 operating departments. Support cost and allocation base information is provided below.
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Support Departments
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Operating Departments
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Maintenance Food Service personnel
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Casting
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Finishing
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Direct support cost
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$10,000
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$20,000
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$15,000
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Allocation bases:
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Employees
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10
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8
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9
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20
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30
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Square feet
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2,000
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3,000
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1,000
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10,000
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5,000
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Manintencance costs are allocated on the basis of square feet, and the other support costs are allocated on the basis of number of employees. Maintenance provides the most services to other support deparments, and food service provides the next most services to other support departments.
If the direct method of allocation is used, calculate the maintenance department cost that will be allocated to:
1) Personnnel
2) Casting