Martina, Inc. has two service departments (Human Resources and Building Maintenance) and two production departments (Machining and Assembly). The company allocates Building Maintenance cost on the basis of square footage and allocates Building Maintenance first in step-down method. The square footage occupied by each department follows.
Human Resources 12,000
Building Maintenance 19,000
Machining 24,000
Assembly 32,000
Assuming use of the step-down method, over how many square feet would the Building Maintenance cost be allocated (i. e., spread) ?
Multiple Choice
87,000.
56,000.
31,000.
68,000.
More information is needed to judge.
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