Answer the following questions using the information below: Company "ABC" has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated based on budgeted maintenance- hours. Personnel Department costs of $100,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Budgeted costs Budgeted maintenance-hours Number of employees Support Departments Maintenance $300,000 ΝΑ 40 Personnel $100,000 1,000 ΝΑ Production Departments A $160,000 600 160 B $240,000 400 480 Using the step-down method, what amount of Personal Department cost will be allocated to Departments A and Department B?
Answer the following questions using the information below: Company "ABC" has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated based on budgeted maintenance- hours. Personnel Department costs of $100,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Budgeted costs Budgeted maintenance-hours Number of employees Support Departments Maintenance $300,000 ΝΑ 40 Personnel $100,000 1,000 ΝΑ Production Departments A $160,000 600 160 B $240,000 400 480 Using the step-down method, what amount of Personal Department cost will be allocated to Departments A and Department B?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Answer the following questions using the information below:
Company "ABC" has two service departments, Maintenance and Personnel.
Maintenance Department costs of $300,000 are allocated based on budgeted maintenance-
hours.
Personnel Department costs of $100,000 are allocated based on the number of employees.
The costs of operating departments A and B are $160,000 and $240,000, respectively.
Data on budgeted maintenance-hours and number of employees are as follows:
Budgeted costs
Budgeted maintenance-hours
Number of employees
Support Departments
Maintenance
$300,000
ΝΑ
40
Personnel
$100,000
1,000
ΝΑ
Production Departments
A
$160,000
600
160
B
$240,000
400
480
Using the step-down method, what amount of Personal Department cost will be allocated to
Departments A and Department B?
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