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The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $340,600 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 $340,600 are allocated on the basis of machine hours. The Accounting Department's costs of $128,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $320,000 and $520,000, respectively. B Maintenance 490 Accounting 30 2,400 220 Machine hours Number of employees 2 2 8 4 What is the Maintenance Department's cost allocated to Department A using the direct method? Multiple Choice $422.400. O $128,000. $266,000. $312,000
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