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Business, 22.07.2019 17:10 jordynsmith02

Patterson lawn co. is the primary provider of lawn care maintenance in the city of jasper. the company has two operating departments, one that performs lawn care services for commercial properties and one that services residential properties. both operating departments are supported by two service departments, administrative and machine maintenance. costs for each of these supporting departments are as follows: administrative machine maintenance total cost $150,000 $225,000 the following estimates that are related to the operating departments as follows: commercial residential total properties properties # of employees 40 20 60 # of customers 125 160 285 # of billable hours 3,000 2,000 5,000 total overhead cost* $ 425,000 $ 350,000 $ 775,000 *note that total overhead cost includes costs allocated from service departments and other overhead costs. the company uses the direct method to allocate service department cost to the operating departments. in order to allocate administrative costs, the company has elected to use the # of employees as the cost driver. to allocate machine maintenance costs, the company uses the # of billable hours as the cost driver. based on the information provided, how much of the administrative cost will be allocated to the residential properties operating department?

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