What amount of technology costs is allocated to gamma


Question: Marginora Manufacturing has three production departments Alpha, Beta, and Gamma. Marginora Manufacturing also has two service departments, Human Resources and Technology. Technology costs are allocated based on value of assets employed, and Human Resources costs are allocated based on number of employees. Assume that Technology provides more service to the other departments than does the Human Resources Department. Dept. Direct Costs Employees Asset Value Technology $750,000 15 - Human Resources 200,000 - $600,000 Alpha 700,000 10 300,000 Beta 200,000 5 150,000 Gamma 250,000 10 800,000 Using the step method, what amount of Technology costs is allocated to Gamma (round to the nearest dollar)?

 

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Accounting Basics: What amount of technology costs is allocated to gamma
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