Business, 25.05.2021 01:00 shukriabdisabrie

Golden Leaves Company has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing departments, P1 and P2. The Maintenance Department costs of $30,000 are allocated on the basis of standard service used. The Personnel Department costs of $4,500 are allocated on the basis of number of employees. The direct costs of Departments P1 and P2 are $9,000 and $15,000, respectively. Data on standard service hours and number of employees are as follows: MD PD P1 P2
Standard service hours used 100 50 300 150
Number of employees 10 20 100 90
Direct labor hours 50 50 250 250
Using the sequential method, with the support department with the highest percentage of interdepartmental service is allocated first, calculate the total cost of the two production departments P1 and P2 after the allocation.

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Golden Leaves Company has two support departments, Maintenance Department (MD) and Personnel Departm...

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