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A housekeeping services department had $250,000 in indirect costs during its most recent year. The...

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Accounting

A housekeeping services department had $250,000 in indirect costs during its most recent year. The costs must be allocated to the three revenue-producing departments A, B, and C.

Each department's revenue and hours of housekeeping services are listed below.

DEPARTMENT Revenue Housekeeping Hours

A $3,000,000 1,000

B $5,000,000 2,500

C $2,000,000 500

Using REVENUE as the allocation base, determine the amount of housekeeping services indirect costs to be allocated to each department.

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