Hanung Corp has two service departments,Maintenance and Personnel.Maintenance Department costs of $360,000 are allocated on the basis of budgeted maintenance-hours.Personnel Department costs of $110,000 are allocated based on the number of employees.The costs of operating departments A and B are $188,000 and $282,000,respectively.Data on budgeted maintenance-hours and number of employees are as follows:

Using the direct method,what amount of Maintenance Department costs will be allocated to Department B? (Do not round any intermediary calculations. )

Question

Hanung Corp has two service departments,Maintenance and Personnel.Maintenance Department costs of $360,000 are allocated on the basis of budgeted maintenance-hours.Personnel Department costs of $110,000 are allocated based on the number of employees.The costs of operating departments A and B are $188,000 and $282,000,respectively.Data on budgeted maintenance-hours and number of employees are as follows:

Using the direct method,what amount of Maintenance Department costs will be allocated to Department B? (Do not round any intermediary calculations. )

Quizplus · Accepted Answer

Maintenance Department costs allocated to Department B = 680 / (680 + 1230)× $360,000 = $128,168

Hanung Corp Has Two Service Departments,Maintenance and Personnel