Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $370,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $120,000 are allocated based on the number of employees. The costs of operating departments A and B are $196,000 and $294,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Production Departments Budgeted maintenance- ours lumber of mployees Maintenance Personnel Department Department Budgeted costs $370,000 $120,000 $196,000 $294,000 Support Departments 200 90 870 A 15 B 1,260 670 280 680
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $370,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $120,000 are allocated based on the number of employees. The costs of operating departments A and B are $196,000 and $294,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Production Departments Budgeted maintenance- ours lumber of mployees Maintenance Personnel Department Department Budgeted costs $370,000 $120,000 $196,000 $294,000 Support Departments 200 90 870 A 15 B 1,260 670 280 680
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Hanung Corp has two service departments, Maintenance and
Personnel. Maintenance Department costs of $370,000 are
allocated on the basis of budgeted maintenance-hours.
Personnel Department costs of $120,000 are allocated based on
the number of employees. The costs of operating departments A
and B are $196,000 and $294,000, respectively. Data on
budgeted maintenance-hours and number of employees are as
follows:
Production
Departments
Budgeted costs $370,000
Budgeted
maintenance-
hours
Number of
employees
Maintenance Personnel
Department Department
200
Support Departments
90
870
A
$120,000 $196,000 $294,000
15
B
1,260 670
280
680
Using the direct method, what amount of Personnel Department
costs will be allocated to Department B? (Do not round any
intermediary calculations.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdab7b130-d92d-4392-b903-c7816ad01628%2Ffb9d82a7-c0e6-4b32-8fa0-ac1975912336%2F3k64lwq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Hanung Corp has two service departments, Maintenance and
Personnel. Maintenance Department costs of $370,000 are
allocated on the basis of budgeted maintenance-hours.
Personnel Department costs of $120,000 are allocated based on
the number of employees. The costs of operating departments A
and B are $196,000 and $294,000, respectively. Data on
budgeted maintenance-hours and number of employees are as
follows:
Production
Departments
Budgeted costs $370,000
Budgeted
maintenance-
hours
Number of
employees
Maintenance Personnel
Department Department
200
Support Departments
90
870
A
$120,000 $196,000 $294,000
15
B
1,260 670
280
680
Using the direct method, what amount of Personnel Department
costs will be allocated to Department B? (Do not round any
intermediary calculations.)
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