2) The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's c

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2 The Hsu Manufacturing Company Has Two Service Departments Maintenance And Accounting The Maintenance Department S C 1 (43.54 KiB) Viewed 32 times

2) The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of S300,000 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. Maintenance Accounting A B Machine hours 480 20 2,300 200 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) S276,000 D) $386,400.