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Question 10 (3 points) Subject Company has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing departments, Pl and P2.
Question 10 (3 points) Subject Company has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing departments, Pl and P2. The Maintenance Department costs of $30,000 are allocated on the basis of standard service used. The Personnel Department costs of $4,500 are allocated on the basis of number of employees. The direct costs of Departments Pl and P2 are $9,000 and $15,000, respectively. Data on standard service hours and number of employees are as follows: MD PD Pl P2 Standard service hours used 100 50 300 150 Number of employees 10 Direct labor hours 50 50 50 10 20 90 90 250 250 What are the total overhead costs associated with P2 after allocating the Maintenance and Personnel departments using the direct method? $37,250 $27,250 $25,000 $15,000
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