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 $120,000 are allocated based on the number of employees. The costs of operating departments A and B are $192,000 and $288,000, respectively. Data on budgeted maintenance−hours and number of employees are as follows:
Support Departments |
Production Departments |
|||
Maintenance Department |
Personnel Department |
A |
B |
|
Budgeted costs |
$360,000 |
$120,000 |
$192,000 |
$288,000 |
Budgeted
maintenance−hours |
NA |
820 |
1,290 |
630 |
Number of employees |
100 |
NA |
250 |
640 |
Using the direct method, what amount of Maintenance Department costs will be allocated to Department B? (Do not round any intermediary calculations.)
Maintenance cost allocated to department B = Total maintenance/Total machine hour*Department B Machine hour
= 360000/1920*630
Maintenance cost allocated to department B = 118125
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $360,000 are allocated...
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 $140,000 are allocated based on the number of employees. The costs of operating departments A and B are $200,000 and $300,000, respectively. Data on budgeted maintenance−hours and number of employees are as follows: Support Departments Production Departments Maintenance Department Personnel Department A B Budgeted costs $360,000 $140,000 $200,000 $300,000 Budgeted maintenance−hours NA 860 1,210...
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 $150,000 are allocated based on the number of employees. The costs of operating departments A and B are $204,000 and $306,000, respectively. Data on budgeted maintenance−hours and number of employees are as follows: Support Departments Production Departments Maintenance Department Personnel Department A B Budgeted costs $360,000 $150,000 $204,000 $306,000 Budgeted maintenance−hours NA 860 1,200...
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