Hanung Corp Has Two Service Departments,Maintenance and Personnel

question 132

Multiple Choice

Hanung Corp has two service departments,Maintenance and Personnel.Maintenance Department costs of $310,000 are allocated on the basis of budgeted maintenance-hours.Personnel Department costs of $190,000 are allocated based on the number of employees.The costs of operating departments A and B are $200,000 and $300,000,respectively.Data on budgeted maintenance-hours and number of employees are as follows:

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

• A)$145,277
• B)$334,211
• C)$133,684
• D)$207,211

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Definitions:

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Actions that are regular, predictable, and stable over time, contributing to perceptions of reliability and integrity.

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