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Question 6 (4 Marks) The Maintenance Department has been servicing Gizmo Production for four years....

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Question 6 (4 Marks) The Maintenance Department has been servicing Gizmo Production for four years. Beginning next year, the company is adding a Scrap-Processing Department to recycle the materials from Gizmo Production. As a result, maintenance costs are expected to increase from $480.000 per year to $500,000 per year. The Scrap-Processing Department will use 25% of the maintenance efforts. Required: Using the stand-alone cost-allocation method, identify the amount of maintenance cost that will be allocated to Gizmo Production and the Scrap-Processing Department next year. (2 Marks) b. Using the incremental cost-allocation method, identify the amount of maintenance cost that will be allocated to Gizmo Production and the Scrap-Processing Department next year. (2 Marks) a

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