Question
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $ 300 comma 000$300,000 are allocated on the basis of budgeted maintenanceminushours.
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of
$ 300 comma 000$300,000
are allocated on the basis of budgeted
maintenanceminushours.
Personnel Department costs of
$ 100 comma 000$100,000
are allocated based on the number of employees. The costs of operating departments A and B are
$ 160 comma 000$160,000
and
$ 240 comma 000$240,000,
respectively. Data on budgeted
maintenanceminushours
and number of employees are as follows:
Support Departments | Production Departments | |||
Maintenance Department | Personnel Department | A | B | |
Budgeted costs | $ 300 comma 000$300,000 | $ 100 comma 000$100,000 | $ 160 comma 000$160,000 | $ 240 comma 000$240,000 |
Budgeted maintenanceminushours | NA | 840840 | 1 comma 2901,290 | 680680 |
Number of employees | 6060 | NA | 270270 | 690690 |
Using the direct method, what amount of Maintenance Department costs will be allocated to Department B? (Do not round any intermediary calculations.)
Question content area bottom
Part 1
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started