Answer the Following Questions Using the Information Below:
Hanung Corp

question 70

Multiple Choice

Answer the following questions using the information below:
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $100,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows:
$\begin{array}{|l|c|c|c|c|}\hline&\text { Support Departments }&&\text { Production }\\&&&\text { Departments }\\\hline& \begin{array}{c}\text { Maintenance } \\\text { Department }\end{array} & \begin{array}{c}\text { Personnel } \\\text { Department }\end{array} & \text { A } & \text { B } \\\hline\text { Budgeted costs } & \$ 300,000 & \$ 100,000 & \$ 160,000 & \$ 240,000 \\\hline \text { hudgeted maintenance- } & \text { NA } & 800 & 1,200 & 600 \\\text { hours }\\\hline \text { Number of employees } & 50 & \text { NA } & 200 & 600\\\hline\end{array}$
-Using the step-down method,what amount of Maintenance Department cost will be allocated to Department B if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up)

• A) $84,143
• B) $69,231
• C) $66,734
• D) $71,443

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Definitions:

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The physical activity of raising and lowering weights as a form of exercise to increase muscle strength and endurance.

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The act of inhaling and exhaling the smoke of tobacco or other substances, which is known to be harmful to health.

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The consumption of beverages containing ethanol, which can range from moderate drinking to alcohol abuse and dependence.

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A condition marked by the inability to achieve or maintain an erection suitable for sexual intercourse.