Business, 19.03.2021 16:00, jakhunter354

The RAH Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $300,000 are allocated on the basis of machine hours. The Accounting Department's costs of $120,000 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $300,000 and $500,000, respectively. Maint Acctg A B
Machine hours 495 115 3,000 390
Number of employees 2 2 8 4
What is the Maintenance Department's cost allocated to Department A using the direct method?
A) $92,000.
B) $230,000.
C) $276,000.
D) $386,400.

Answers: 3

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The RAH Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenan...