Hang Corp has two service departments, Maintenance and Personnel. Maintenance Department operating costs of $300,000 are...
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Hang Corp has two service departments, Maintenance and Personnel. Maintenance Department operating costs of $300,000 are allocated on the basis of maintenance- hours. Personnel Department operating costs of $100,000 are allocated based on the number of employees. The overhead costs of operating departments A and B are $160,000 and $240,000, respectively. Data on maintenance-hours and number of employees are as follows: Overhead Costs Support Departments Production Departments Maintenance Department Personnel Department Department A Department $300,000 $100,000 $160,000 $240,000 Maintenance-hours used NA 800 1,200 600 Number of employees 50 NA 200 600 Using the Step-down method, compute total overhead cost of Department B (including its own) after allocation of service department costs. Maintenance Department cost will be allocated first. (Round ratios. Example 35% or 0.35) Example of Answer: 4000 (No comma, space, decimal point, or $ sign) A/ Hang Corp has two service departments, Maintenance and Personnel. Maintenance Department operating costs of $300,000 are allocated on the basis of maintenance- hours. Personnel Department operating costs of $100,000 are allocated based on the number of employees. The overhead costs of operating departments A and B are $160,000 and $240,000, respectively. Data on maintenance-hours and number of employees are as follows: Overhead Costs Support Departments Production Departments Maintenance Department Personnel Department Department A Department $300,000 $100,000 $160,000 $240,000 Maintenance-hours used NA 800 1,200 600 Number of employees 50 NA 200 600 Using the Step-down method, compute total overhead cost of Department B (including its own) after allocation of service department costs. Maintenance Department cost will be allocated first. (Round ratios. Example 35% or 0.35) Example of Answer: 4000 (No comma, space, decimal point, or $ sign) A/
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