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:

Damages

Financial compensation awarded to a party in a lawsuit for loss or injury caused by the actions of another.

Plaintiff

The party who initiates a lawsuit or legal action against another party (the defendant) in a court of law, alleging harm or infringement of rights.

Superseding Cause

An intervening cause that alters the natural sequence of events and relieves the original party from liability in a legal context.

Causal Chain

A sequence of events where each event is the result of the previous one and causes the next, often used in legal and philosophical arguments.