Question: kindly, could you solve this question below? Exercise: Coca cola Company has two support departments, HR and Maintenance, and two production departments A and B.
Exercise: Coca cola Company has two support departments, HR and Maintenance, and two production departments A and B. HR Department costs are allocated based on the number of employees. Maintenance Department costs are allocated on the basis of budgeted maintenance-hours. Data on budgeted costs and allocation bases are as follows: 100 Support Departments Production Departments HR Maintenance B Dep. Dep. Budgeted costs $ 100,000 $ 80,000 $ 24,000 $ 160,000 Number of employees NA 20 80 Budgeted maintenance-hours 10 NA 50 40 # of units produced 1000 2000 Required: 1. Using the direct method, what amount of HR Department costs will be allocated to department A and B. 2. Using the step-down method, allocate the costs of support departments to production departments; assume HR will be allocated first. Then compute the cost/unit
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