Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $350,000 are allocated on the basis of 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 $180,000 and $270,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Budgeted costs Budgeted Support Departments Maintenance Personnel Department Department $350,000 $100,000 ΝΑ 880 B A $180,000 $270,000 1,230 670 maintenance-hours Number of employees 100 280 600 Using the direct method, what amount of Personnel Department costs will be allocated to Department A? (Do not round any intermediary calculations.) OA. $31,818 OB. $68,182 O C. $28,571 O D. $57,273 Production Departments NA
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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