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Brownley Company has two service departments and two operating (production) departments. The Payroll Department services...

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Accounting

Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all three of the other departments in proportion to the number of employees in each. The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space used by each. Listed below are the operating data for the current period:

Service Depts. Production Depts.
Payroll Maintenance Milling Assembly
Direct costs $ 20,400 $ 25,500 $ 76,500 $ 105,400
No. of personnel 15 15 45
Sq. ft. of space 10,000 15,000

The total cost of operating the Milling Department for the current period is:

Multiple Choice

  • $14,280.

  • $15,912.

  • $76,500.

  • $90,780.

  • $92,412.

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