FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Multiple Choice
-
$787,500.
-
$741,500.
-
$833,500.
-
$77,730.
Transcribed Image Text:The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $867,300 are
allocated on the basis of machine hours. The Accounting Department's costs of $135,600 are allocated on the basis of the number of employees within a
specific department. The direct departmental costs for A and B are $270,000 and $470,000, respectively.
Maintenance
Accounting
A
Machine hours
655
110
3,750
380
Number of employees
2
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?
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