Ask Question
16 November, 17:39

The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $728,850 are allocated on the basis of machine hours. The Accounting Department's costs of $148,800 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $280,000 and $480,000, respectively. Maint Acctg A B Machine hours 495 115 3,000 390 Number of employees 2 2 8 4 What is the Maintenance Department's cost allocated to Department A using the direct method

+5
Answers (1)
  1. 16 November, 18:42
    0
    The correct answer is $645,000.

    Explanation:

    According to the scenario, the computation of the given data are as follows:

    We can calculate the Maintenance Department's cost allocated to Department A using the direct method are as follows:

    Cost allocated = Maintenance Department's costs * Machine hours of Dept. A : (Machine hours of Dept. A + Machine hours of Dept. B)

    By putting the value, we get

    Cost Allocated = $728,850 * 3,000 : (3,000 + 390)

    = $728,850 * 3,000 : 3,390

    = $645,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $728,850 are ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers