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Grey's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $260,000, $150,000, and $60,000, respectively. Information on the hours used are as follows:   Acct Admin HR Surgery ER Hours in Acct   20 48 360 220 Hours in Admin 16   8 120 80 Hours in HR 8 4   65 130 What are the total costs allocated from the accounting department to the operating units?   Question options:   a)  $265,789.00   b)  $0.00   c)  $276,511.00   d)  $274,765.00

Grey's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $260,000, $150,000, and $60,000, respectively. Information on the hours used are as follows:   Acct Admin HR Surgery ER Hours in Acct   20 48 360 220 Hours in Admin 16   8 120 80 Hours in HR 8 4   65 130 What are the total costs allocated from the accounting department to the operating units?   Question options:   a)  $265,789.00   b)  $0.00   c)  $276,511.00   d)  $274,765.00

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...
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Grey's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $260,000, $150,000, and $60,000, respectively. Information on the hours used are as follows:

  Acct Admin HR Surgery ER
Hours in Acct   20 48 360 220
Hours in Admin 16   8 120 80
Hours in HR 8 4   65 130

What are the total costs allocated from the accounting department to the operating units?

 

Question options:

 

a) 

 $265,789.00
 

b) 

 $0.00
 

c) 

 $276,511.00
 

d) 

 $274,765.00
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