Riemer, Inc A) $500
B) $4,500

Multiple Choice

Riemer, Inc. has four departments. Information about these departments is listed below. Maintenance is a service department. If allocated maintenance cost is based on floor space occupied by each of the other departments, compute the amount of maintenance cost allocated to the Cutting Department. $\begin{array}{lcrrr} & \text { Maintenance } & \text { Cutting } & \text { Assembly } & \text { Packaging } \\\text { Direct costs } & \$ 18,000 & \$ 30,000 & \$ 70,000 & \$ 45,000 \\\text { Sq. ft. of space } & 500 & 1,500 & 2,000 & 2,500 \\\text { No. of employees } & 2 & 3 & 16 & 4\end{array}$

A) $500.
B) $4,500.
C) $3,724.
D) $6,000.
E) $4,153.