The accountant for Sam Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected:
Support Departments Operating Departments
Maintenance Cafeteria Cutting Packaging
Direct costs $ $ $ $
Number of employees
Square feet
If the direct method is used, the total cost including allocations for the packaging department will be
$
$
$
$ I need help with the steps. Thank you!
