Morris Manufacturing Company has two support departments,Maintenance Department and Personnel Department,and two producing departments,X and Y.The Maintenance Department costs of $30,000 are allocated on the basis of standard service hours used.The Personnel Department costs of $4,500 are allocated on the basis of number of employees.The direct costs of Departments X and Y are $9,000 and $15,000,respectively. Data on standard service hours and number of employees are as follows:

\begin{array}{lcccc} & \text { Maint. } & \text { Person. } & \text { Dept. } & \text { Dept } \\& \underline{\text { Dept. }} & \underline{\text { Dept. }} & \underline{\mathbf{X}} & \underline{\mathbf{Y}} \\\text { Standard service hours used } & 100 & 75 & 600 & 300 \\\text { Number of employees } & 50 & 100 & 150 & 150 \\\text { Dirert lahnur houre }& 125 & 125 & 500 & 250\end{array}

- What are the total overhead costs associated with Department X after allocating the Maintenance and Personnel Departments using the direct method?
A)$9,000
B)$11,250
C)$29,000
D)$31,250

What Is the Definition of Split-Off Point

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge