Business, 15.04.2020 16:12 harpermags7830
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.
Maint Acctg A B
Machine hours 655 110 3,750 380
Number of employees 2 2 8 4
What is the Maintenance Department's cost allocated to Department A using the direct method?
$741,500.
$787,500.
$603,500.
$897,900.
Answers: 2
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The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenan...
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