Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Delta Entreprise has two service departments, Maintenance and Personnel. The Maintenance Department's costs of $319898 are allocated to the other departments on the basis of

Delta Entreprise has two service departments, Maintenance and Personnel. The Maintenance Department's costs of $319898 are allocated to the other departments on the basis of budgeted maintenance-hours and the Personnel Department's costs of $190208 are allocated to the other departments based on the number of employees. The costs of the operating departments, A and B, are $200,000 and $300,000, respectively. Data on the budgeted maintenance-hours and the number of employees are as follows:

Maintenance DepartmentPersonnel DepartmentABBudgeted costs$319898$190208$200,000$300,000Budgeted maintenance-hours

NA

807

1204

629

Number of employees65NA280630

Calculate the amount of the Maintenance Department's costs that will be allocated to the operating department, Department A, if the direct method of cost allocation is used by Delta Enterprise.

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

Handbook Of Energy Audits

Authors: Prentice-Hall

1st Edition

0881731285, 978-0881731286

More Books

Students also viewed these Accounting questions