Question
Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $160,000 are allocated on the basis of budgeted maintenance- hours. Personnel
Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $160,000 are allocated on the basis of budgeted maintenance- hours. Personnel Department costs of $40,000 are allocated based on the number of employees. The costs of operating departments A and B are $80,000 and $120,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Budgeted Indirect costs Budgeted maintenance- hours Production Support Departments Maintenance Departments Department Personnel Department A B $160,000 $40,000 $80,000 $120,000 400 wwwww 480 320 80 240 10,000 30,000 Number of employees 20 Budgeted Labor Hours Required: Solve for the missing letters using the direct method. Solutions: Costs Incurred as budgeted Allocation of Maintenance department costs Allocation of personnel department costs Total Support Department Operating Department Total Maintenance Personnel A B $160,000 $40,000 $80,000 $120,000 $400,000 0 0 (a) (b) (c) (d) (e)
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