Answer the following questions using the information below:

Company "ABC" has two service departments, Maintenance and Personnel.

Maintenance Department costs of $400,000 are allocated based on 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:

	Support Departments	Production Departments
	Maintenance	Personnel	A	B
Budgeted costs	$400,000	$100,000	$160,000	$240,000
Budgeted maintenance-hours	NA	1,000	600	400
Number of employees	40	NA	160	480

Using the direct method, what amount of Maintenance Department and Personal Department costs will be allocated to Department A and B?

	A.	$240,000 and $160,000 $25,000 and $75,000
	B.	$180,000 and $120,000 $25,000 and $75,000
	C.	None of them
	D.	$96,000 and $64,000 $20,000 and $50,000

Answer the following questions using the information below:

Company "ABC" has two service departments, Maintenance and Personnel.

Maintenance Department costs of $400,000 are allocated based on 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:

	Support Departments	Production Departments
	Maintenance	Personnel	A	B
Budgeted costs	$400,000	$100,000	$160,000	$240,000
Budgeted maintenance-hours	NA	1,000	600	400
Number of employees	40	NA	160	480

Using the step-down method, what amount of Maintenance Department cost will be allocated to Personnel Department, Departments A and Department B?

	A.	$160,000; $100,000; and $96,000
	B.	$160,000; $250,000; and $64,000
	C.	$200,000; 120,000; and 80,000
	D.	$150,000; $90,000; and $60,000

Answer the following questions using the information below:

Company "ABC" has two service departments, Maintenance and Personnel.

Maintenance Department costs of $400,000 are allocated based on 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:

	Support Departments	Production Departments
	Maintenance	Personnel	A	B
Budgeted costs	$400,000	$100,000	$160,000	$240,000
Budgeted maintenance-hours	NA	1,000	600	400
Number of employees	40	NA	160	480

Using the step-down method, what amount of Personal Department cost will be allocated to Departments A and Department B?

	A.	$62,500 and $187,500
	B.	None of them
	C.	$75,00 and $225,000
	D.	$160,000 and $96,000

1) Company "Y" has two service departments DA and DB, and two production departments, P1 and P2.

	Services provided to:
Departments Costs	DA $92,000	DB $60,000	P1	P2
		15%
	20%

Required:

Set up algebraic equations in linear form for each department to express reciprocal relationship

Department A (DA) and Department B (DB)

	A.	DA = $92,000 + 0,2 DB and DB = $60,000 + 0,15 DA
	B.	DA = $92,000 + 0,05 DB and DB = $60,000 + 0,05 DA
	C.	DA = $92,000 + 0,15 DB and DB = $60,000 + 0,2 DA

) Company "Y" has two service departments, DA and DB, and two production departments, P1 and P2.

	Services provided to:
Departments Costs	DA $92,000	DB $60,000	P1	P2
		15%
	20%

Required:

Solve the set of linear equation to obtain complete reciprocated costs of support department DA

	A.	DA = $113,402
	B.	DA = $104,216
	C.	DA = $105,154
	D.	None of them

1) Company "Y" has two service departments, DA and DB, and two production departments, P1 and P2.

	Services provided to:
Departments Costs	DA $92,000	DB $60,000	P1	P2
		15%
	20%

Required:

Solve the set of linear equation to obtain complete reciprocated costs of support department DB

	A.	DB = $67,010
	B.	DB = $76,082
	C.	None of them
	D.	DB= $75,773