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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please help me solve this question, it is saying this is the wrong answer. thanks!

Transcribed Image Text:Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $360,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $160,000 are allocated based on the number of employees. The
costs of operating departments A and B are $208,000 and $312,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows:
Support Departments
Maintenance
Personnel
Department. Department
$360,000 $160,000
NA
800
maintenance-hours
Number of employees
95
ΝΑ
230
600
Using the direct method, what amount of Personnel Department costs will be allocated to Department A? (Do not round any intermediary calculations.)
Budgeted costs
Budgeted
Production
Departments
ⒸA. $115,663
OB. $44,337
OC. $39,784
OD. $57 639
A
B
$208,000 $312,000
1,240
660
C...
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