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Intermodal Moving Uses the Direct Method and Allocates Its Maintenance

question 77

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Intermodal Moving uses the direct method and allocates its maintenance costs on the basis of repair hours and its payroll department costs on the basis of employees. Estimated costs and information on the services and production departments follows:  Payroll $36,000 Maintenance $48,000 Packing 30 employees, 280 repair hours  Driving 10 employees, 1,960 repar hours \begin{array}{lr}\text { Payroll } & \$ 36,000 \\\text { Maintenance } & \$ 48,000 \\\text { Packing } & 30 \text { employees, 280 repair hours } \\\text { Driving } & 10 \text { employees, 1,960 repar hours }\end{array} How much of the payroll and maintenance costs will be allocated to the packing department?  Payroll  Maintenance  A. $900$171.43 B. $27,000$6,000 C. $27,000$21.43 D. $1,200$6,000\begin{array} { l c c } & \text { Payroll } & \text { Maintenance } \\\text { A. } & \$ 900 & \$ 171.43 \\\text { B. } & \$ 27,000 & \$ 6,000 \\\text { C. } & \$ 27,000 & \$ 21.43 \\\text { D. } & \$ 1,200 & \$ 6,000\end{array}

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Definitions:

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