Using the sequential method, Thomas Company allocates Maintenance Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Maintenance costs before Cafeteria costs.
The company has the following information about its two service departments and two production departments, Cutting and Assembly:
Square
Feet Number of
Employees
Maintenance Department 500 20
Cafeteria Department 1,500 10
Cutting Department 1,500 60
Assembly Department 7,000 20
What is the percentage (proportional) usage of the Maintenance Department by the Cutting Department?
a.17.6%
b.15%
c.66.7%
d.14.2%
