The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $449,500 are allocated on the basis of machine hours. The Accounting Department's costs of $138,000 are allocated on the basis of the number of employees within a specific department The direct departmental costs for A and B are $350,000 and $550,000, respectively. Maintenance Accounting A В Machine hours 675 45 2,850 250 Number of employees 8 4 What is the Maintenance Department's cost allocated to Department B (rounded to the nearest whole dollar) using the step method and assuming the Maintenance Department's costs are allocated first? Multiple Choice $413,250. $367,250.
The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $449,500 are allocated on the basis of machine hours. The Accounting Department's costs of $138,000 are allocated on the basis of the number of employees within a specific department The direct departmental costs for A and B are $350,000 and $550,000, respectively. Maintenance Accounting A В Machine hours 675 45 2,850 250 Number of employees 8 4 What is the Maintenance Department's cost allocated to Department B (rounded to the nearest whole dollar) using the step method and assuming the Maintenance Department's costs are allocated first? Multiple Choice $413,250. $367,250.
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
$449,500 are allocated on the basis of machine hours. The Accounting Department's costs of $138,000 are allocated on the basis of the
number of employees within a specific department The direct departmental costs for A and B are $350,000 and $550,000, respectively.
Maintenance
Accounting
A
В
Machine hours
675
45
2,850
250
Number of employees
8
4
What is the Maintenance Department's cost allocated to Department B (rounded to the nearest whole dollar) using the step method and
assuming the Maintenance Department's costs are allocated first?
Multiple Choice
$413,250.
$367,250.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2536ab1e-26d9-45f0-b00c-a2aa11219c76%2Fd92baedb-8b40-4741-a637-5041f89be21f%2Flqwtqi7.jpeg&w=3840&q=75)
Transcribed Image Text:The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of
$449,500 are allocated on the basis of machine hours. The Accounting Department's costs of $138,000 are allocated on the basis of the
number of employees within a specific department The direct departmental costs for A and B are $350,000 and $550,000, respectively.
Maintenance
Accounting
A
В
Machine hours
675
45
2,850
250
Number of employees
8
4
What is the Maintenance Department's cost allocated to Department B (rounded to the nearest whole dollar) using the step method and
assuming the Maintenance Department's costs are allocated first?
Multiple Choice
$413,250.
$367,250.
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