Maintenance Costs at Sturgeon Company Are Allocated to the Production

Multiple Choice

Maintenance costs at Sturgeon Company are allocated to the production departments based on area occupied.Maintenance costs of $300,000 are budgeted to maintain a 60,000 square foot production area.If the finishing department occupies 25,000 square feet, how much of the maintenance department costs will be allocated to the finishing department?

A) $125,000
B) $175,000
C) $100,000
D) $5,000