Question
Answer the following questions using the information below: Company Honor has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated based
Answer the following questions using the information below: Company Honor has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated based on budgeted maintenance-hours. Personnel Department costs of $100,000 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 Departments Production Departments Maintenance Personnel A B Budgeted costs $300,000 $100,000 $160,000 $240,000 Budgeted maintenance-hours NA 1,000 600 400 Number of employees 40 NA 160 480 Using the step-down method, what amount of Maintenance Department cost will be allocated to Personnel Department, Departments A and Department B? A. $150,000; $90,000; and $60,000 B. $160,000; 96,000; and 64,000 C. $160,000; $100,000; and $96,000 D. $160,000; $250,000; and $64,000
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