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Question 23 Answer the following questions using the information below: Company ABC has two service departments, Maintenance and Personnel. Maintenance Department costs of $400,000
Question 23 Answer the following questions using the information below: Company "ABC" has two service departments, Maintenance and Personnel. Maintenance Department costs of $400,000 are allocated based on budgeted maintenance-hours. Personnel Department costs of $100,000 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: Budgeted costs Budgeted maintenance-hours Number of employees Support Departments Production Departments Maintenance Personnel $400,000 NA 40 $100,000 1,000 $160,000 $240,000 600 400 NA 160 480 Using the step-down method, what amount of Personal Department cost will be allocated to Departments A and Department B? OA, $62,500 and $187,500 B. $160,000 and $96,000 C. $75,00 and $225,000 D. None of them
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