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3. Coca cola Company has two support departments, HR and Maintenance, and two production departments A and B. HR Department costs are allocated based on
3. Coca cola Company has two support departments, HR and Maintenance, and two production departments A and B. HR Department costs are allocated based on the number of employee Maintenance Department costs are allocated on the basis of budgeted maintenance-hours. Da budgeted costs and allocation bases are as follows: Production Departments A B Support Departments HR Maintenance Dep. Dep. $ 180,000 $ 80,000 NA 20 10 NA Budgeted costs Number of employees Budgeted maintenance-hours # of units produced Required: $ 24,000 80 50 1000 $ 160,000 100 40 2000 1. Using the direct method, what amount of HR Department costs will be allocated to departme B. 1 mark 2. Using the step-down method, allocate the costs of maintenance department to production de assume Maintenance department will be allocated first. Then compute the cost/unit 2 mark
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