Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's $300,000 cost is allocated by machine hours. The Accounting Department's $120,000 cost is allocated based on the number of employees in a particular department. Direct department costs for A and B are $300,000 and $500,000, respectively.

	care	bill	A	B
machine clocks	480	20	2.300	200
Number of Employees	2	2	8	4

What is the cost of Maintenance Department allocated to Department B using the step method and assuming Maintenance Department's costs are allocated first?

Answer rating: 100% (QA)

Step 1 Allocate the cost of Maintenance Department to Department A and B Departme... View the full answer