CakeCo, Inc A) $400
B) $6,000

CakeCo, Inc. has three operating departments. Information about these departments is listed below. Maintenance is service department at CakeCo that incurred $12,000 of costs during the period. If allocated maintenance cost is based on floor space occupied by each of the operating departments, compute the amount of maintenance cost allocated to the Baking Department. $\begin{array} { | l | r | r | r | } \hline & \text { Mixing } & \text { Baking } & \text { Packaging } \\\hline \text { Direct costs } & \$ 21,000 & \$ 15,000 & \$ 9,000 \\\hline \text { Sq ft of space } & 1,000 & 1,500 & 500 \\\hline\end{array}$

A) $400.
B) $6,000.
C) $7,500.
D) $1,200.
E) $4,000.

Correct Answer:

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