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Handy Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $ 3 3 0 , 0 0 0 are allocated on the
Handy Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $ are allocated on the basis of budgeted maintenancehours. Personnel Department costs of $ are allocated based on the number of employees. The costs of operating departments A and are $ and $ respectively. Data on budgeted maintenancehours and number of employees are as follows:
Production
Support Departments
Departments
tabletableMaintenanceDepartmenttablePersonnelDepartmentABBudgeted costs,$$$Budgeted maintenancehours,NANumber of employees,NA
Using the direct method, compute the amount of Maintenance Department costs that will be allocated to Department BDo not round any intermediary calculations.
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