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6. The HGF Company separates its activities into two operating departments and two support departments. Support Department 1 had budgeted costs of $60,000 and
6. The HGF Company separates its activities into two operating departments and two support departments. Support Department 1 had budgeted costs of $60,000 and Support Department 2 had budgeted costs of $45,000 during the month of March. HGF allocates the costs of each support department based on service hours. The table here shows how many service hours each support department provided to the two operating departments, to the other support department, and to itself.. Support Support Operating Operating Total Service Hours Provided 1 2 1 2 Support 1,800 2,000 3,000 5,000 1 Support 2 300 100 900 1,800 11,800 3,100 If HGF uses the direct method to allocate support department costs, how much will be allocated to Operating Department 1 and Operating Department 2, respectively, in March? A. $37,000 and $68,000 B. $37,500 and $67,500 C. $37,194 and $67,806. D. $38,271 and $66,729
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