Answer the following questions using the information below:
Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $80,000 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:

-Using the direct method, what amount of Personnel Department costs will be allocated to Department B?
A)$20,000
B)$32,000
C)$48,000
D)$60,000

Question

Answer the following questions using the information below:
Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $80,000 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:
 
-Using the direct method, what amount of Personnel Department costs will be allocated to Department B?
A)$20,000 
B)$32,000 
C)$48,000 
D)$60,000

Quizplus · Accepted Answer

The Answer of Answer the following questions using the information below:
Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $80,000 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:
 
-Using the direct method, what amount of Personnel Department costs will be allocated to Department B?
A)$20,000 
B)$32,000 
C)$48,000 
D)$60,000

Answer the Following Questions Using the Information Below