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Bayard Backup Is a Manufacturer of Data Storage Devices How Much Technology Department Costs Will Be Allocated to the Two

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Bayard Backup is a manufacturer of data storage devices.Bayard operates two service departments-maintenance and technology, and two production departments-assembly and testing.Maintenance costs are allocated on the basis of square footage occupied, and technology costs are allocated on the basis of the number of workstations.The following data relate to allocations of service department costs:  Maintenance Iechnology Assembly Iesting  Service department costs $400,000$230,000 Square footage 2,0003,00020,00030,000 Workstations 4161030\begin{array}{lrrrr}&\text { Maintenance}&\text { Iechnology}&\text { Assembly}&\text { Iesting }\\\hline\text { Service department costs } & \$ 400,000 & \$ 230,000 & & \\\text { Square footage } & 2,000 & 3,000 & 20,000 & 30,000 \\\text { Workstations } & 4 & 16 & 10 & 30\end{array} How much technology department costs will be allocated to the testing department using the direct method?

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Definitions:

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A false statement made during a contract negotiation that was believed to be true by the person making it, affecting the other party's decision to enter the contract.

Remedy of Rescission

A legal remedy that voids a contract, returning the parties to their positions prior to the agreement, typically used in cases of misrepresentation or fraud.

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The transfer of legal rights from one party to another under the terms of a statute.

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