Business, 21.05.2020 23:16 meaganblatcher

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:

Production

Support Departments Departments

Maintenance Department

Personnel Department

A

B

Budgeted costs

$360,000

$110,000

$188,000

$282,000

Budgeted maintenance-hours

NA

880

1230

680

Number of employees

60

NA

290

630

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

Select one:

a. $100,398

b. $128,168

c. $87,742

d. $167,330

Answers: 1

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Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of...

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