Company X has two main
departments – A and B - and two support departments - HR and Maintenance. The
company allocates support department costs in both departments using headcount
as a basis for allocation, as per the following data:

Compute the costs allocated
by HR to the Maintenance department, using both direct method and step down method (assuming that HR is the first department to be considered in the allocation).

Question

Company X has two main
departments – A and B - and two support departments - HR and Maintenance. The
company allocates support department costs in both departments using headcount
as a basis for allocation, as per the following data: 
   
 Compute the costs allocated
by HR to the Maintenance department, using  both  direct method and step down method (assuming that HR is the first department to be considered in the allocation).

Answer

None of the others

Answer

Direct method = $1312200; Step down = $1312200

Answer

Direct method = $2296350; Step down = $1968300

Answer

Direct method = $0; Step down = $1312200

Answer

Direct method = $6889050; Step down = $5904900

	HR	Maintenance	Dept A	Dept B
total cost before allocation $	$9185400	$165352	$420372	$632412
headcount (number of employees)		50	75	225
maintenance hours	800		1290	600

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Company X has two main departments – A and B - and two support departments - HR ...

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