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(A) Jakes Battery Company has two service departments, Maintenance, and Personnel. Maintenance Department costs of $160,000 are allocated on the basis of budgeted maintenance-hours. Personnel
(A) Jakes Battery Company has two service departments, Maintenance, and Personnel. Maintenance Department costs of $160,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $40,000 are allocated based on the number of employees. The costs of operating departments A and B are $80,000 and $120,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows:
Problem 4 (A) Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $160,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $40,000 are allocated based on the number of employees. The costs of operating departments A and B are $80,000 and $120,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Production Departments Support Departments Maintenance Personnel Department Department $160,000 $40,000 A B $80,000 $120,000 Budgeted costs Budgeted maintenance- hours Number of employees NA 400 480 320 20 NA 80 240 Required: . Using the direct method, what amount of Maintenance Department costs will be allocated to Department B? Using the step-down method, what amount of Maintenance Department cost will be allocated to Department B if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up) Calculate total reciprocated costs for the support departments under the Reciprocal method (Round to 3 decimal places)Step by Step Solution
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