Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Osprey Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $200,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs
Osprey Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $200,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $200,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Using the direct method, what amount of Personnel Department costs will be allocated to Department B? $117.647 $120,000 $200,000 $125,000 $55,556 Using the step-down method, what total amount of support department cost will be allocated to Department B? Allocate the Personnel Department first. (due to possible rounding differences, choose the answer closest to your answer) $198.077 $176,471 $180,556 $139,820 $170,588 Using the reciprocal method, show the simultaneous equations used to determine the fully reciprocated costs of providing the support department services. You do not need to solve the equations
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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