Hanung Corp Has Two Service Departments, Maintenance and Personnel

question 34

Multiple Choice

Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $360,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $110,000 are allocated based on the number of employees. The costs of operating departments A and B are $188,000 and $282,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows:
Production
Support DepartmentsDepartments

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

• A) $100,398
• B) $128,168
• C) $87,742
• D) $167,330

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Definitions:

Interest-bearing Bonds

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Interest Rates

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The full volume of financial resources in an economy at a particular point.

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The phenomenon where consumers spend more as the value of their assets, such as property or stocks, increases.