Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $160,000 are...
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Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $160,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $40,000 are allocated based on the numbe of employees. The costs of operating departments A and B are $80,000 and $120,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Budgeted costs Production Support Departments Departments Maintenance Personnel A B Department Department $160,000 $40,000 $80,000 $120,000 Budgeted maintenance- hours 150 400 480 320 Number of employees 20 20 30 30 00 80 240 Instructions: Using the step-down method prepare a schedule to calculate the total cost of the production Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $160,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $40,000 are allocated based on the numbe of employees. The costs of operating departments A and B are $80,000 and $120,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Budgeted costs Production Support Departments Departments Maintenance Personnel A B Department Department $160,000 $40,000 $80,000 $120,000 Budgeted maintenance- hours 150 400 480 320 Number of employees 20 20 30 30 00 80 240 Instructions: Using the step-down method prepare a schedule to calculate the total cost of the production
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