Author Question: Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of ... (Read 94 times)

Garrulous · **on:** Mar 6, 2021

Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $310,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $190,000 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:
Production

Support Departments

Departments

	Maintenance Department	Personnel Department	A	B
Budgeted costs	$310,000	$190,000	$200,000	$300,000
Budgeted maintenance-hours	NA	810	1270	630
Number of employees	65	NA	280	630

Using the direct method, what amount of Maintenance Department costs will be allocated to Department A? (Do not round any intermediary calculations.)
◦ $145,277
◦ $334,211
◦ $133,684
◦ $207,211

kiamars2010 · **Reply #1 on:** Mar 6, 2021

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