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Exit The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $340,600 are allocated on the basis of
Exit The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $340,600 are allocated on the basis of machine hours. The Accounting Department's costs of $128,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $320,000 and $520,000, respectively. Machine hours Number of employees Maintenance 490 2 Accounting 30 2 2,400 8 220 4 What is the cost of the Accounting Department's cost allocated to Department A using the step method and assuming the Maintenance Department's costs are allocated first? Note: Do not round intermediate calculations.
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