The RAH Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $312,000 are allocated on the basis of machine hours. The Accounting Department's costs of $132,000 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $312,000 and $512,000, respectively.

	Maint	Acctg	A	B
Machine hours	504	32	2,540	320
Number of employees	14	14	20	16

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

Answer rating: 100% (QA)

Maintenance Accounting A Total Machine Hours 504 32 2540 320 3396 No of ... View the full answer