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The RAH Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's cost of 300,000 are allocated on the basis of machine hours. The Accounting Department's cost of $120,000 are allocated on the basis of the number of employees within a specific department. The direct departmental cost for A and B are $300,000 and $500,000, respectively.
a. What is the Maintenance Department's cost allocated to Department A using the direct method?b. What is the Accounting Department's cost allocated to Department B using the direct method?c. 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?
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