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Hampton Corporation has two production departments, Machining and Assembly and three service plant departments, Supervision (Super), Maintenance (Maint) and Cafeteria (Cafe). Data relevant to Hampton
Hampton Corporation has two production departments, Machining and Assembly and three service plant departments, Supervision (Super), Maintenance (Maint) and Cafeteria (Cafe). Data relevant to Hampton are: Direct % % % % % Dept Cost $ Super Maint Caf Machining Assembly Super 120,000 0.10 0.10 0.60 0.20 Maint 360,000 0.15 0.10 0.60 0.15 Caf 170,000 0.20 0.20 0.30 0.30 Machining280,000 Assembly380,000 Under the step-method, supervision costs (Super) are allocated first, maintenance costs (Maint) second, and cafeteria costs (Caf) third. (Your answers may be just a little different due to rounding. Choose the answer closest to yours) 15. What is the total amount of service department costs that would be allocated to the assembly department, assuming Hampton uses the direct-method to allocate the service department costs? A) $187,000 B) $165,000 C) $171,583 D) None of the above (A, B, or C)
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