Question: Can you explain the answer? A business has two support departments: maintenance and human resources. Maintenance costs are allocated based on maintenance hours. Human resources

Can you explain the answer? A business has two support departments:

Can you explain the answer?

A business has two support departments: maintenance and human resources. Maintenance costs are allocated based on maintenance hours. Human resources costs are allocated based on the number of employees in each department. The following data applies for the month: A. Determine the amount of maintenance costs that should be allocated to Department A using the DIRECT METHOD. B. Determine the amount of maintenance costs that should be allocated to Department A using the STEP DOWN METHOD. Assume the maintenance department comes before HR in the allocation sequence

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