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The RAH Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $308,000 are allocated on the basis of machine hours.
The RAH Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $308,000 are allocated on the basis of machine hours. The Accounting Department's costs of $128,000 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $308,000 and $508,000, respectively. Machine hours Number of employees Maint Acctg B 496 28 2,460 280 10 10 16 12 What is the Accounting Department's cost allocated to Department Busing the direct method
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