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The Hsu Manufacturing Company has two service departments. Maintenance and Accounting. The Maintenance Department's costs of $867,300 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 $867,300 are allocated on the basis of machine hours. The Accounting Department's costs of $135,600 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $270,000 and $470,000, respectively. Accounting A B Maintenance 655 110 3,750 380 Machine hours Number of employees 2 2 8 4 What is the Maintenance Department's cost allocated to Department B (rounded to the nearest whole dollar) using the step method and assuming the Maintenance Department's costs are allocated first? Multiple Choice $787,500. $741,500. Multiple Choice $787,500. $741,500. $833,500. $77,730.
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