Business, 25.11.2020 14:20 anonymous12443535

Golden Leaves Company has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing departments, P1 and P2. The Maintenance Department costs of $30,000 are allocated on the basis of standard service used. The Personnel Department costs of $4,500 are allocated on the basis of number of employees. The direct costs of Departments P1 and P2 are $9,000 and $15,000, respectively. Data on standard service hours and number of employees are as follows:

MD PD P1 P2
Standard service hours used 100 50 300 150
Number of employees 10 20 90 90
Direct labor hours 50 50 250 250

Using the direct method, the cost of the Maintenance Department allocated to Department P1 is:

a. $15,000.
b. $10,000.
c. $20,000.
d. $30,000.

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Golden Leaves Company has two support departments, Maintenance Department (MD) and Personnel Departm...

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