Question
17. Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $ 340 comma 000$340,000 are allocated on the basis of budgeted
17. Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of
$ 340 comma 000$340,000
are allocated on the basis of budgeted
maintenanceminushours.
Personnel Department costs of
$ 140 comma 000$140,000
are allocated based on the number of employees. The costs of operating departments A and B are
$ 192 comma 000$192,000
and
$ 288 comma 000$288,000,
respectively. Data on budgeted
maintenanceminushours
and number of employees are as follows:
Support Departments | Production Departments | |||
Maintenance Department | Personnel Department | A | B | |
Budgeted costs | $ 340 comma 000$340,000 | $ 140 comma 000$140,000 | $ 192 comma 000$192,000 | $ 288 comma 000$288,000 |
Budgeted maintenanceminushours | NA | 810810 | 1 comma 2101,210 | 600600 |
Number of employees | 7575 | NA | 300300 | 630630 |
Using the direct method, what amount of Maintenance Department costs will be allocated to Department B? (Do not round any intermediary calculations.)
A.
$ 112 comma 707$112,707
B.
$ 77 comma 863$77,863
C.
$ 95 comma 470$95,470
D.
$ 159 comma 116$159,116
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