The cost of operating the Human Resources department of Goodtime Foods Inc.includes $216,000 of fixed costs and $57,600 of variable costs.The department normally budgets 7,200 human resource hours a year.Two departments receive human resource support, Production and Sales.Production is budgeted at 5,040 hours a year, while Sales is budgeted the remainder.Required:
a.In July, Production used 600 human resource hours and Sales used 200 hours.How much did each department receive in human resource costs assuming a single-rate is used based on budgeted hours?
b.In August, Production used 500 human resource hours and Sales used 200 hours.How much did each department receive in human resource costs assuming a dual-rate is used with budgeted usage for fixed costs and actual usage for variable costs?
c.Which method seems more appropriate in this case? Explain.

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The Answer of The cost of operating the Human Resources department of Goodtime Foods Inc.includes $216,000 of fixed costs and $57,600 of variable costs.The department normally budgets 7,200 human resource hours a year.Two departments receive human resource support, Production and Sales.Production is budgeted at 5,040 hours a year, while Sales is budgeted the remainder.Required:
a.In July, Production used 600 human resource hours and Sales used 200 hours.How much did each department receive in human resource costs assuming a single-rate is used based on budgeted hours?
b.In August, Production used 500 human resource hours and Sales used 200 hours.How much did each department receive in human resource costs assuming a dual-rate is used with budgeted usage for fixed costs and actual usage for variable costs?
c.Which method seems more appropriate in this case? Explain.

The Cost of Operating the Human Resources Department of Goodtime