The accountant for Milton, Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected: 
If the direct method is used, the total cost (including allocations) for the packaging department will be:
Definitions:
Compound Interest
The process where interest is calculated not just on the original principal but also on the interest that has accumulated over previous periods.
Compound Interest
This involves calculating interest by adding the initial amount of money deposited or borrowed to the interest that has accumulated over time.
Compound Interest
Accumulated interest on a loan or deposit determined by including both the initial principal amount and the interest accumulated over preceding periods.
Arithmetic Operations
Basic mathematical operations that include addition, subtraction, multiplication, and division.
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