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Question - The costs of operating departments A and B are $160,000 and $240,000 respectively. Data on budgeted maintenance-hours and number of employees:
Support Departments Production Departments Maintenance Department Personnel Department
A B
Budgeted costs $300,000 $100,000 $160,000 $240,000
Budg maintenance-hrs NA 1000 600 400
Number of employees 40 NA 160 480
Using the step-down method, what amount of Personal Department cost will allocated to Department A and Depratment B?
a. none
b. 160,000 and 96,000
c. 62,500 and 187,500
d. 60.00 and 180,000
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