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please i am now exams PETRA Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $450,000 are allocated on the basis of
please i am now exams
PETRA Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $450,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $150,000 are allocated based on the number of employees. The costs of operating departments A and B are $240,000 and $360,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Production Departments B Support Departments Maintenance Personnel Department Department $450,000 $150,000 NA 1,200 Budgeted costs Budgeted maintenance-hours $240,000 $360,000 1,800 900 Number of employees 75 NA 300 900 Q. 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? (Round up)Step by Step Solution
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