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Business, 08.11.2019 23:31 19jcormier

Jackman industries has two service departments, maintenance and power, and two operating departments, production and assembly. management has decided to allocate maintenance costs on the basis of direct-labor hours in each department and power costs on the basis of machine hours. the following data were experienced by the company in the current period: maintenance power production assembly direct labor hours 0 400 4,000 2,000 machine hours 2,000 0 8,400 1,600 department direct costs $ 9,000 $ 20,000 $ 70,000 $ 50,000 what is the total service cost allocated to the production department during the period if the direct method of cost allocation is used?

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