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The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $588,300 are allocated on the basis of machine hours.
The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $588,300 are allocated on the basis of machine hours. The Accounting Department's costs of $134,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $220,000 and $420,000, respectively. 1 Machine hours Number of employees Maint Acctg A B 690 85 2,850 330 22814 What is the Maintenance Department's cost allocated to Department A using the direct method? O $343,250. $481,250. $527,250. $637,650
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