Andover, Inc., has two producing departments. Each producing…
Andover, Inc., has two producing departments. Each producing department is held responsible for a share of the costs of a support department. Actual and budgeted data are as follows: Support department hours used: Department X 12,000 Department Y 4,000 Total hours 16,000 Support department costs: Actual support department costs $48,000 Budgeted fixed department costs $20,000 Budgeted variable rate per hour $ 2.50 Normal support department usage is 8,000 hours each for Department X and Department Y. Assuming the direct method is used and the purpose is performance evaluation, support department costs allocated to Department X are