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Sunshine Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs
Sunshine Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $80,000 are allocated based on the number of employees. Data on budgeted maintenance-hours and number of employees are as follows: Production Departments N Support Departments Maintenance Personnel Department Department $320,000 $80,000 NA Budgeted costs Budgeted maintenance-hours $160,000 1120 $240.000 1280 500 15% 10 1046 600 Number of employees 40 20% Using the step-down method, what amount of Maintenance Department cost will be allocated to Department B. Start with Maintenance Department
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