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The Mohawk-Hudson Company is an electric utility which has two service departments, Accounting and Maintenance. It...

The Mohawk-Hudson Company is an electric utility which has two service departments, Accounting and Maintenance. It has two operating departments, Generation and Transmission. The company does not distinguish between fixed and variable service department costs. Maintenance Department costs are allocated on the basis of maintenance hours of service. Accounting Department costs are allocated to operating departments on the basis of accounting hours of service provided. Budgeted costs and other data for the coming year are as follows: Accounting Maintenance Generation Transmission Budgeted costs $100,000 $200,000 $600,000 $400,000 Maintenance hours of service -- 600 7,200 4,800 Accounting hours of service 500 2,000 4,500 3,500 The step method is used to allocate service department costs, with the accounting department being allocated first.

What would be the amount of maintenance department cost allocated to the accounting department? $19,048 $18,000 $16,000 $20,000 $0

What would be the amount of maintenance department cost allocated to the generation department? $140,000 $150,685 $123,750 $142,250 $132,000

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