Priate weight factor? Problems: Series B
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PR 19-1B Support department cost allocation
Obj. 3
Hooligan Adventure Supply produces and sells various outdoor equipment. The Molding and
Assembly production departments are supported by the Personnel and Maintenance departments.
Personnel costs are allocated to the production departments based on the number of employees,
and Maintenance costs are allocated based on number of service calls. Information about these
departments is detailed in the following table:
Personnel Maintenance Molding Assembly
Department Department Department Department
Number of employees
28
10
Number of service calls
57
168
112
Department cost
$15,000
$11,400
$72,000
$69,000
(Continued)
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