Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Anna corporation Ltd. operates one Answer the following questions using the information below: ompanyABC has two service departments: Maintenance and Personnel. Maintenance epartment costs of

Anna corporation Ltd. operates one
image text in transcribed
Answer the following questions using the information below: ompany"ABC" has two service departments: Maintenance and Personnel. Maintenance epartment costs of $420,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $90,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Support DepartmentsProducrtion Deparments 420,000 $90,000 $160000$240 000 Maintenance PersonnelA Budgeted costs udgeted maintenance-hours Number of employees NA 40 800 NA 960 160 640 480 21) Using the direct method, what amount of Maintenance Department and Personal points Department costs will be allocated to Department A and B? A) S96,000 and 64,000; B) $252,000 and 168,000; $22,500and 67,500 C) $252,000 and 168,000, $30,000 and70,000 D) None of these $20,000 and 50,000 Show your work Support Departments Production Departments $240000 Maintenance PersonnelA |$160001 $90,000 $42 Costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Textbook Of Cost And Management Accounting

Authors: M N Arora

11th Edition

9390470501, 978-9390470501

More Books

Students also viewed these Accounting questions

Question

OUTCOME 4 Explain how labour relations differ around the world.

Answered: 1 week ago