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Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $340,000 are allocated on the basis of budgeted maintenance - hours Personnel
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $340,000 are allocated on the basis of budgeted maintenance - hours Personnel Department costs of $120,000 are allocated based on the number of employees. The costs of operating departments A and B are $184,000 and $276,000, respectively. Data on budgeted maintenance - hours and number of employees are as follows: Production Support Departments Departments Maintenance Personnel Department B Department Budgeted costs $340,000 $120,000 $184,000 $276,000 Budgeted NA 890 1,300 630 maintenance - hours Number of employees 90 NA 270 700 Using the step-down method, what amount of Maintenance Department cost will be allocated to Department Birthe service department with the highest percentage of interdepartmental support service is allocated first? (Do not found any intermediary calculations.) O A $26,809 OB. $75,957 OC. $32,553 OD. $55,319
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