The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $641,850 are allocated on the basis of machine hours. The Accounting Department's costs of $212,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $390,000 and $590,000, respectively. Maintenance Accounting A B Machine hours 495 65 3,600 290 Number of employees 2 2 8 4 What is the Maintenance Department's cost allocated to Department B using the step method and assuming the Maintenance Department's costs are allocated first? Note: Do not round intermediate calculations.
The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $641,850 are allocated on the basis of machine hours. The Accounting Department's costs of $212,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $390,000 and $590,000, respectively. Maintenance Accounting A B Machine hours 495 65 3,600 290 Number of employees 2 2 8 4 What is the Maintenance Department's cost allocated to Department B using the step method and assuming the Maintenance Department's costs are allocated first? Note: Do not round intermediate calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $641,850 are allocated on the basis of machine hours. The Accounting Department's costs of $212,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $390,000 and $590,000, respectively.
| Maintenance | Accounting | A | B | |
|---|---|---|---|---|
| Machine hours | 495 | 65 | 3,600 | 290 |
| Number of employees | 2 | 2 | 8 | 4 |
What is the Maintenance Department's cost allocated to Department B using the step method and assuming the Maintenance Department's costs are allocated first?
Note: Do not round intermediate calculations.
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