The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $536,250 are allocated on the basis of machine hours. The Accounting Department's costs of $151,200 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $240,000 and $440,000, respectively. Maintenance Accounting A в Machine hours 755 95 2,400 350 Number of employees 2 8 What the Maintenance Department's cost allocated to Department A using the direct method? Multiple Choice $578,400. $422,000. $284,000. $468,000.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $536,250 are allocated on the basis of machine hours. The Accounting
Department's costs of $151,200 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $240,000 and $440,000, respectively.
Maintenance
Accounting
A
B
Machine hours
755
95
2,400
350
Number of employees
2
2
8
4
What is the Maintenance Department's cost allocated to Department A using the direct method?
Multiple Choice
$578,400.
O $422,000.
$284,000.
$468,000.
Transcribed Image Text:The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $536,250 are allocated on the basis of machine hours. The Accounting Department's costs of $151,200 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $240,000 and $440,000, respectively. Maintenance Accounting A B Machine hours 755 95 2,400 350 Number of employees 2 2 8 4 What is the Maintenance Department's cost allocated to Department A using the direct method? Multiple Choice $578,400. O $422,000. $284,000. $468,000.
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