Joe's Tire Company has two support departments, Personnel and Maintenance. The Maintenance Department cos of $80,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $20,000 are allocated based on the number of employees. Costs of Departments A and B are $40,000 and $60,000, respectively. Data on standard service hours and number of employees are as follows. How much of the cost of the Personnel Department is allocated to Department B using the direct method? Round to the nearest dollar. Personnel Department 200 Standard service hours used Number of employees O A. $8,000 O B. $60,000 O C. $12,632 O D. $5,000 Ⓒ E. $15,000 Maintenance Department 200 10 20 Production Department A 240 40 Production Department B 160 120

Joe's Tire Company has two support departments, Personnel and Maintenance. The Maintenance Department cos of $80,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $20,000 are allocated based on the number of employees. Costs of Departments A and B are $40,000 and $60,000, respectively. Data on standard service hours and number of employees are as follows. How much of the cost of the Personnel Department is allocated to Department B using the direct method? Round to the nearest dollar. Personnel Department 200 Standard service hours used Number of employees O A. $8,000 O B. $60,000 O C. $12,632 O D. $5,000 Ⓒ E. $15,000 Maintenance Department 200 10 20 Production Department A 240 40 Production Department B 160 120

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...

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