(Answered) : Question 4 Service Department Cost Allocation 20 Marks Total Inns Battery Company Two Serv Q30683231

Question 4: Service department cost allocation (20 marks intotal) Inns Battery Company has two service departments:Maintenance and Personnel. Maintenance Department costs areallocated on the basis of budgeted maintenance-hours. PersonnelDepartment costs are allocated based on the number of employees.Data on budgeted maintenance-hours and number of employees are asfollows: Support Departments Production Departments MaintenanceDepartment Personnel Department A B Budgeted costs $180,000 $30,000$80,000 $120,000 Budgeted maintenance-hours n/a 240 720 240 Numberof employees 20 n/a 60 120 Required: 4a. Using the direct method,determine the amount of support department costs to be allocated toProduction Department A. 4b. Using the step-down method, determinethe amount of Maintenance