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1. Veneer Company has two service departments and two producing departments. The number of employees in each department is: Personnel 10 Cafeteria 25 Producing Department

1. Veneer Company has two service departments and two producing departments. The number of employees in each department is:

Personnel 10
Cafeteria 25
Producing Department A 422
Producing Department B 133
590

The department costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $67,850 during a given period, the amount of cost allocated to Department B under the direct method would be:

2.

The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $792,000 are allocated on the basis of machine hours. The Accounting Department's costs of $171,600 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $250,000 and $450,000, respectively.

Maint Acctg A B
Machine hours 590 100 3,600 360
Number of employees 2 2 8 4

What is the Maintenance Department's cost allocated to Department A using the direct method?

3 and 4:

The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $489,600 are allocated on the basis of machine hours. The Accounting Department's costs of $122,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $210,000 and $410,000, respectively.

Maint Acctg A B
Machine hours 895 80 2,400 320
Number of employees 2 2 8 4

3. What is the Accounting Department's cost allocated to Department B using the direct method?

4. What is the Maintenance Department's cost allocated to Department B using the step method and assuming the Maintenance Department's costs are allocated first?

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