Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $310,000 are allocated on the basis of budgeted maintenance-hours. PersonnelDepartment costs of $170,000 are allocated based on the number of employees. The costs of operating departments A and B are $192,000 and $288,000, respectively. Data on budgetedmaintenance-hours and number of employees are as follows:Budgeted costsBudgetedmaintenance-hoursNumber of employeesSupport DepartmentsOA $200,588OB. $124,235OC. $135415OD. $74,260MaintenancePersonnelDepartment Department$310,000$170,000NA900ProductionDepartmentsAB$192,000 $288,0001,21066075NA660Using the step-down method, what amount of Maintenance Department cost will be allocated to Department A if the service department with the highest percentage of interdepartmental supportservice is allocated first? (Do not round any intermediary calculations.)290

Using step down method, the cost of support department is also allocated to another support…

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 $170,000 are allocated based on the number of employees. The costs of operating departments A and B are $192,000 and $288,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Support Departments Maintenance Personnel Department A B Department $310,000 $170,000 $192,000 $288,000 NA 900 1,210 660 75 NA 290 660 Using the step-down method, what amount of Maintenance Department cost will be allocated to Department A if the service department with the highest percentage of interdepartmental support service is allocated first? (Do not round any intermediary calculations) Budgeted costs Budgeted maintenance-hours Number of employees Production Departments OA $200,588 OB. $124,235 OC. $135,415 OD. $74.260

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 $170,000 are allocated based on the number of employees. The costs of operating departments A and B are $192,000 and $288,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Support Departments Maintenance Personnel Department A B Department $310,000 $170,000 $192,000 $288,000 NA 900 1,210 660 75 NA 290 660 Using the step-down method, what amount of Maintenance Department cost will be allocated to Department A if the service department with the highest percentage of interdepartmental support service is allocated first? (Do not round any intermediary calculations) Budgeted costs Budgeted maintenance-hours Number of employees Production Departments OA $200,588 OB. $124,235 OC. $135,415 OD. $74.260

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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Subject : Accounting
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