Your Companey has two service departments – Personnel and Maintenance. The Maintenance Department's costs of $160,000 are allocated on the basis of standard hours used. The Personnel Department's costs of $40,000 are allocated based on the number of employees. The costs of the operating Departments A and B are $80,000 and $120,000, respectively. Data on standard service hours and number of employees are as follows: Standard Service Maintenance Dept. Personnel Dept. Production Depts. A B Hours used - 400 480 320 Number of Employees 20 - 80 240 What is the cost of the Maintenance Department allocated to Department B using the direct method? What is the cost of the Maintenance Department allocated to Personnel Department using the direct method? What is the cost of the Maintenance Department allocated to Personnel Department using the step-down method? What is the cost of the Personnel Department allocated to Department A using the step-down method?
Your Companey has two service departments – Personnel and Maintenance. The Maintenance Department's costs of $160,000 are allocated on the basis of standard hours used. The Personnel Department's costs of $40,000 are allocated based on the number of employees. The costs of the operating Departments A and B are $80,000 and $120,000, respectively.
Data on standard service hours and number of employees are as follows:
Standard Service Maintenance Dept. Personnel Dept. Production Depts.
A B
Hours used - 400 480 320
Number of Employees 20 - 80 240
- What is the cost of the Maintenance Department allocated to Department B using the direct method?
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What is the cost of the Maintenance Department allocated to Personnel Department using the direct method?
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What is the cost of the Maintenance Department allocated to Personnel Department using the step-down method?
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What is the cost of the Personnel Department allocated to Department A using the step-down method?
The costs can be allocated among departments using various methods as direct, step and reciprocal method.
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