Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $350,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $100,000 areallocated based on the number of employees. The costs of operating departments A and B are $180,000 and $270,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows:Support DepartmentsMaintenancePersonnelDepartment Department$350,000 $100.000AB$180,000 $270,000Budgeted costsBudgetedΝΑ8801,230670maintenance - hoursNumber of employees100280600Using the direct method, what amount of Personnel Department costs will be allocated to Department A? (Do not round any intermediary calculations.)OA. $31,818OB. $68,182OC. $28,571O D. $57,273ProductionDepartmentsNA

The direct method of allocation is used to allocate the cost of the service department is allocated…

Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $350,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $100,000 are allocated based on the number of employees. The costs of operating departments A and B are $180,000 and $270,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Budgeted costs Budgeted Support Departments Maintenance Personnel Department Department $350,000 $100,000 ΝΑ 880 B A $180,000 $270,000 1,230 670 maintenance-hours Number of employees 100 280 600 Using the direct method, what amount of Personnel Department costs will be allocated to Department A? (Do not round any intermediary calculations.) OA. $31,818 OB. $68,182 O C. $28,571 O D. $57,273 Production Departments NA

Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $350,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $100,000 are allocated based on the number of employees. The costs of operating departments A and B are $180,000 and $270,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Budgeted costs Budgeted Support Departments Maintenance Personnel Department Department $350,000 $100,000 ΝΑ 880 B A $180,000 $270,000 1,230 670 maintenance-hours Number of employees 100 280 600 Using the direct method, what amount of Personnel Department costs will be allocated to Department A? (Do not round any intermediary calculations.) OA. $31,818 OB. $68,182 O C. $28,571 O D. $57,273 Production Departments NA

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 6E: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing...

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