Hanung Corp Has Two Service Departments, Maintenance and Personnel

question 111

Multiple Choice

Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $400,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $200,000 are allocated based on the number of employees. The costs of operating departments A and B are $240,000 and $360,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows:
Production
Support DepartmentsDepartments

Using the direct method, what amount of Personnel Department costs will be allocated to Department A? (Do not round any intermediary calculations.)

• A) $58,824
• B) $52,632
• C) $70,588
• D) $141,176

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Definitions:

Heart Failure

A condition in which the heart is unable to pump sufficiently to maintain blood flow to meet the body's needs.

PO

A medical abbreviation for "per os," Latin for "by mouth," indicating that medication or food should be taken orally.

Nifedipine Extended Release

A form of medication designed to release the active ingredient, nifedipine, slowly over time to treat conditions such as high blood pressure and angina.

PO

An abbreviation for "per os," a latin term meaning "by mouth," used in medical prescriptions.