Posh Bakery has two support departments, machine maintenance (MM) and human resources (HR). Machine maintenance...

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Accounting

Posh Bakery has two support departments, machine maintenance (MM) and human resources (HR). Machine maintenance costs for the
year total $520,000 and are allocated according to the number of budgeted machine hours expected for each department. HR costs
for the year total $220,000 and are allocated based on employee head count. Use the data below to allocate support department
costs to Posh Bakery's two production departments: Pies and Cakes.
Required:
Prepare a schedule that allocates support department costs using the reciprocal method. Identify the equations that should be used to
determine the costs that should be allocated by the support departments. Compute the total amount of support costs allocated to
each operating department: Pies and Cakes.
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