Solution-What are the costs allocated to each of the

What are the costs allocated to each of the production

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Reference no: EM132507978

The personnel department at Hudson Company has $45,000 in budgeted costs for the coming period. Hudson is trying to determine whether to allocate these costs to the two production departments based on the number of employees or on machine hours used in the department.

Information about the production departments is given below:

Department A Department B

Number of employees 15 35

Anticipated machine hours 600 400

Question 1: What are the costs allocated to each of the production departments? Which allocation base is preferable?

Reference no: EM132507978

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What are the costs allocated to each of the production

Reference no: EM132507978

Reference no: EM132507978

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