Oaks Company has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two...
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Accounting
Oaks Company has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two line departments, P1 and P2. The MD cost driver is service hours. The PD cost driver is number of employees. Plan data, including service hours used by each department, is shown below. What is planned MD cost assigned to P2 using the direct method? MD PD P1 P2 service hours -- 50 300 150 employees 10 20 90 90 labor hours 50 50 250 250 plan cost (000s) $30 $4.5 $9 $15
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