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The Building Maintenance Department for Advantage Toys Budgets Annual Costs

question 17

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The building maintenance department for Advantage Toys budgets annual costs of $4,200,000 based on the expected operating level for the coming year. The costs are allocated to two production departments. The following data relate to the potential allocation bases:  Production Dept. A  Production Dept. B Square footage 15,00045,000 Direct labor hours 25,00050,000\begin{array}{lll}&\text { Production Dept. A }&\text { Production Dept. B}\\\text { Square footage } & 15,000 & 45,000 \\\text { Direct labor hours } & 25,000 & 50,000\end{array} If Advantage assigns costs to departments based on direct labor hours, how much maintenance cost will be allocated to Production Department B?

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