Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's cost of $390,600 is allocated to machine hours. The Accounting Department's $110,400 cost is allocated based on the number of employees in a particular department. Direct department costs for A and B are $340,000 and $540,000, respectively.

	care	bill	A	B
machine clocks	875	40	2.550	240
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)

To allocate the cost of the Maintenance Department to Department B using the step method we need to ... View the full answer