Using the step-down method what amount of maintenance

Reference no: EM13599495

Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $80,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows:

Matince personal A B

Budg cost 32000 80000 160000 240000
Budg maint hours na 800 960 640
Number of employess 40 na 160 480

Using the step-down method, what amount of Maintenance Department cost will be allocated to Department B if the service department with the highest percentage of interdepartmental support service is allocated first?

Reference no: EM13599495

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