Martinez, Inc., has tow separate departments (Human Resources and Building Maint

Question

Martinez, Inc., has tow separate departments (Human Resources and Building Maintenance) and two production departments (Machining and Assembly). The company allocates Building Maintenance cost on the basis of square footage and believes that Building Maintenance provides more service than Human Resources. The square footage occupied by each department follows:

Human Resources         6,000

Building Maintenance    13,000

Machining                     18,000

Assembly                      26,000

Assuming use of the direct method, over how many square feet would the Building Maintenance cost be allocated (i.e., spread)?

44,000

44,000

Explanation / Answer

44,000

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