Question
Bolton Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs
Bolton Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated on the basis of 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 Department | Personnel Department | A | B | |
Budgeted costs | $300,000 | $100,000 | $160,000 | $240,000 | |
Budgeted maintenance-hours | NA | 800 | 1,200 | 600 | |
Number of employees | 50 | NA | 200 | 600 |
Under full reciprocal method, what is the total cost of Department B after allocation of service department costs? (Round up ratios to the 4th decimal point, and $ amount to the 2nd decimal point )
Question 1 options:
$444,991.63 | |
$450,151.98 | |
$379,830.00 | |
$210,151.98 |
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