Question 8.6: The application rate for Maintenance department costs is $20...
The application rate for Maintenance department costs is $20 per hour of service. The use of the Maintenance department by other departments is:
| Department | Hours | |
| Accounting | 50 | |
| Sales | 80 | |
| Manufacturing | 200 | |
How much of the Maintenance department costs are allocated to these departments?
| Department | Hours | Application Rate | Allocated Costs | |
| Accounting | 50 | $20 | $1,000 | |
| Sales | 80 | 20 | 1,600 | |
| Manufacturing | 200 | 20 | 4,000 | |
| Total costs allocated | $6,600 | |||
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