Reference no: EM131778386

Problem - Hampton Corporation has two production departments, Machining and Assembly and three service plant departments, Supervision (Super), Maintenance (Maint) and Cafeteria (Cafe). Data relevant to Hampton are:

Direct % % % % %

Dept Cost $ Super Maint Café Machining Assembly

Super 120,000 0.10 0.10 0.60 0.20

Maint 360,000 0.15 0.10 0.60 0.15

Café 170,000 0.20 0.20 0.30 0.30

Machining280,000

Assembly380,000

Under the step-method, supervision costs (Super) are allocated first, maintenance costs (Maint) second, and cafeteria costs (Café) third. (Your answers may be just a little different due to rounding. Choose the answer closest to yours)

What is the amount of maintenance that would be allocated to the machining department, assuming Hampton uses the step-method to allocate the costs of service departments?

A) $216,000

B) $262,588

C) $315,200

D) None of the above (A, B, or C).