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Golden Leaves Company has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing departments, P1 and P2. The Maintenance Department costs
Golden Leaves Company has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing departments, P1 and P2. The Maintenance Department costs of $30,000 are allocated on the basis of standard service used. The Personnel Department costs of $4,500 are allocated on the basis of number of employees. The direct costs of Departments P1 and P2 are $9,000 and $15,000, respectively. Data on standard service hours and number of employees are as follows: MD PD P1 P2 Std Serv Hr 100. 50. 300. 150 No. Emp 10 20 90 90 D.Labor hrs 50 50 250 250 Using the direct method, the cost of the Personnel Department allocated to Department P1 is: A. $2,250 B. $4,500 C. $2,132 D. $2,700
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