Use the information below to answer the following question(s) .
Joe's Tire Company has two support departments, Personnel and Maintenance. The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $20,000 are allocated based on the number of employees. Costs of Departments A and B are $40,000 and $60,000, respectively.
Data on standard service hours and number of employees are as follows:
-What is the Machining Department's allocation of both service departments respectively if their complete reciprocated cost were $375,000 for Plant Maintenance and $100,000 for Data Processing?
A) $112,275 and $74,468
B) $131,250 and $84,375
C) $281,250 and $12,500
D) $337,500 and $200,000
E) $337,500 and $12,500
Correct Answer:
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