Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are...
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Accounting
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $170,000 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
$300,000
$170,000
$188,000
$282,000
Budgeted maintenance-hours
NA
860
1280
600
Number of employees
100
NA
250
600
Using the direct method, what amount of Personnel Department costs will be allocated to Department B? (Do not round any intermediary calculations.)
$50,000
$120,000
$44,737
$107,368
Answer & Explanation
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