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Question Two (30 min) 165 points) Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $400,000 are allocated on the basis
Question Two (30 min) 165 points) Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $400,000 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 $240,000 and $360,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Production Support Departments Departments Maintenance Personnel A B Department Department Budgeted costs $400,000 $200,000 $240,000 $360,000 Budgeted maintenance- NA 50% 20% 30% percentage of service Number of employees 60% percentage of service NA 20% 20% Required: 1. Allocate support department to production department using direct method
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