Question : Answer the following questions using the information below: Hanung Corp has : 1211843

 

Answer the following questions using the information below:

 

Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $100,000 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:

 

 

Support Departments

Production Departments

 

Maintenance Department

Personnel Department

A

B

Budgeted costs

$300,000

$100,000

$160,000

$240,000

Budgeted maintenance-hours

NA

800

1,200

600

Number of employees

50

NA

200

600

 

11) Using the direct method, what amount of Maintenance Department costs will be allocated to Department B?

A) $96,000

B) $100,000

C) $110,000

D) $122,000

12) Using the direct method, what amount of Personnel Department costs will be allocated to Department B?

A) $82,000

B) $80,000

C) $77,000

D) $75,000

 

13) 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? (Round up)

A) $84,143

B) $69,231

C) $66,734

D) $71,443

 

14) Using the direct method, what amount of Maintenance Department costs will be allocated to Department A?

A) $210,000

B) $225,000

C) $198,000

D) $200,000

 

15) Using the direct method, what amount of Personnel Department costs will be allocated to Department A?

A) $25,000

B) $28,000

C) $30,000

D) $20,000

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

A) $100,000

B) $132,372

C) $134,472

D) $138,462

 

Answer the following questions using the information below:

 

Goldfarb’s Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $350,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $150,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $250,000 and $300,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows:

 

 

Support Departments

Production Departments

 

Warehouse Department

Data Center Department

Music

Books

Budgeted costs

$350,000

$150,000

$125,000

$150,000

Budgeted warehouse-hours

NA

500

1,000

1,500

Number of computer hours

200

NA

800

1,000

 

17) Using the direct method, what amount of Warehouse Department costs will be allocated to Department Books?

A) $140,000

B) $210,000

C) $150,000

D) $175,000

18) Using the direct method, what amount of Data Center Department costs will be allocated to Department Music?

A) $150,000

B) $66,667

C) $83,333

D) $60,000

 

19) Using the step-down method, what amount of Data Center Department cost will be allocated to the Warehouse Department if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up)

A) $50,000

B) $150,000

C) $15,000

D) $0

 

20) Using the step-down method, what amount of Warehouse Department cost will be allocated to Department Music if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up)

A) $233,333

B) $116,667

C) $243,333

D) $121,667