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Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $310,000 are allocated on the basis of budgeted maintenance - hours. Personnel
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $310,000 are allocated on the basis of budgeted maintenance - hours. Personnel Department costs of $100,000 are allocated based on the number of employees. The costs of operating departments A and B are $164,000 and $246,000, respectively. Data on budgeted maintenance - hours and number of employees are as follows: Production Support Departments Departments Maintenance Personnel A B Department Department Budgeted costs $310,000 $100,000 $164,000 $246,000 Budgeted NA 900 1,220 610 maintenance - hours Number of employees 100 NA 220 610 Using the step-down method, what amount of Maintenance Department cost will be allocated to Department B if the service department with the highest percentage of interdepartmental support service is allocated first? (Do not round any intermediary calculations.) O A. $22,344 OB. $44,689 O C. $69,267 OD. $24,982 The Charmatz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data apply to the coming budget year: Budgeted costs of operating the copying facility for 400,000 to 600,000 copies Fixed costs per year $64,000 Variable costs 2 cents (0.02) per copy Budgeted long-run usage in copies per year. Marketing Department 90,000 copies Operations Department 310,000 copies Budgeted amounts are used to calculate the allocation rates. O A. $57,200 B. $55,800 OC. $108,933 OD. $54,840 The Conity Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a $14,000,000 bond issuance, the Electric Mixer Division used $9,200,000 and the Electric Lamp Division used $4,800,000 for expansion. Interest costs on the bond totaled $1,000,000 for the year. What amount of interest costs should be allocated to the Electric Mixer Division? (Round any intermediary calculations two decimal places and your final answer to the nearest dollar.) BER O A. $9,200,000 OB. $660,000 OC. $603,448 OD. $4,800,000
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