Answered: and B are $210,000 and $410,000,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $489,600 are allocated on the basis of machine hours. The Accounting Department's costs of $122,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $210,000 and $410,000, respectively.

	Maintenance	Accounting	A	B
Machine hours	895	80	2,400	320
Number of employees	2	2	8	4

What is the Maintenance Department's cost allocated to Department A using the direct method?

Note: Do not round intermediate calculations.

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