Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Inventory Best Practices

Authors: Steven M. Bragg

2nd Edition

1118000749, 9781118000748

More Books

Students also viewed these Accounting questions

Question

11.5 Describe the grievance procedure in a union environment.

Answered: 1 week ago

Question

11.6 Explain union decertification.

Answered: 1 week ago