Solution-What is the Accounting Department cost

What is the Accounting Department cost

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Problem - The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $300,000 are allocated on the basis of machine hours. The Accounting Department's costs of $120,000 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $300,000 and $500,000, respectively.

	Maintenance	Accounting	A	B
Machine hours	480	20	2,300	200
Number of employees	2	2	8	4

Required - What is the Accounting Department's cost allocated to Department B using the direct method?

Reference no: EM132801239

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What is the Accounting Department cost

Reference no: EM132801239

Reference no: EM132801239

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