Expo manufacturing has two production departments and two support departments. The number of employees for each department is as follows: Human Resources shows a budget of $21,000 and accounting, $98,000, for the coming year. Support department costs are allocated on the basis of the number of employees. What amount would be allocated to the human resource department using the step method?
A)$0.
B)$649.
C)$658.
D)$98,000.

Question

Expo manufacturing has two production departments and two support departments. The number of employees for each department is as follows:  Human Resources shows a budget of $21,000 and accounting, $98,000, for the coming year. Support department costs are allocated on the basis of the number of employees. What amount would be allocated to the human resource department using the step method?
A)$0. 
B)$649. 
C)$658. 
D)$98,000.

Quizplus · Accepted Answer

5 + 520 + 220 = 745 
5 ÷ 745 x $98,000 = $658 
Hr # of empl + mach of empl + assm of empl = total # of empl 
Hr # of empl ÷ total # of empl x acct costs = alloc costs

Expo Manufacturing Has Two Production Departments and Two Support Departments