COST ACCOUNTING
VARIABLE COSTING
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Question
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Trek Inc. has two service department ( HR and Maintenance) and two production department (Machining and assembly). The company allocate Maintenance provide more service than HR. The square footage occupied by each department follows:HR 7, 000Maintenance 11, 000Machining 20, 000Assembly 28, 000Assuming use of the step-down method, over how many square feet would be building maintenance cost be allocted
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18, 000
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48, 000
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55, 000
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66, 000
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Explanation:
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