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The Georgia Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 10,000 units of Part No. 498
The Georgia Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 10,000 units of Part No. 498 is as follows: $ 3 40 Direct materials Variable direct manufacturing laber Variable manufacturing overhead Fixed manufacturing overhead allocated Total manufacturing cost per unit 10 21 $74 The Clayton Company has offered to sell 10.000 units of Part No. 498 to Georgia Co. for $71 per unit. Georgia Co. will make the decision to buy the part from Clayton if there is an overall savings of at least $45,000 for Georgia Co. If Georgia Co. accepts Clayton's offer. $11 per unit of the fixed overhead allocated would be eliminated. Furthermore, Georgia Co. has determined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575. For Georgia to achieve an overall savings of $45,000. the amount of relevant costs that would have to be saved by using the released facilities in the manufacture of Part No. 575 would be which of the following $125.000 $115.000 $100.000 $30.000 Clayton Corp 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 $200,000 are allocated based on the number of employees. The costs of operating departments A and B are $208,000 and $312,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Production Support Departments Departments Maintenance Personnel A A B Department Department Budgeted costs $320,000 $200,000 $208,000 $312,000 Budgeted maintenance- NA 860 1230 690 hours Number of employees 50 NA 270 630 Using the step-down method, what amount of Maintenance Department cost will be allocated to Department B if the maintenance department cost is allocated first? (Do not round any intermediary calculations.) $79,424 $49,640 $31,079 $88,489
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