Tardes Company Has Two Service Departments, Maintenance and Personnel, as Well

Tardes Company has two service departments, Maintenance and Personnel, as well as two production departments, Mixing and Finishing.Maintenance costs are allocated
Based on square footage while personnel costs are allocated based on number of
Employees.The following information has been gathered for the current year: $\begin{array}{lrrrr}&\text { Maintenance}&\text { Personnel}&\text { Mixing }&\text {Finishing }\\\hline\text { Direct dept. costs } & \$ 50,400 & \$ 35,000 & \$ 42,000 & \$ 70,000 \\\text { Square footage } & 1,600 & 800 & 3,200 & 2,400 \\\text { Number of employees } & 16 & 24 & 48 & 64\end{array}$ If the direct method is used to allocate costs, then the amount of overhead allocated from Personnel to Finishing would be _____.

A) $33,600
B) $20,000
C) $16,800
D) $14,147

Correct Answer:

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