Alexander Manufacturers Ltd has two service departments, Maintenance and Personnel. Maintenance Department costs of $346,942...
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Alexander Manufacturers Ltd has two service departments, Maintenance and Personnel. Maintenance Department costs of $346,942 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $202,230 are allocated based on the number of employees. The costs of operating departments A and B are $208,000 and $312,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows:
Maintenance Department
Personnel Department
A
B
Budgeted costs
$346,942
$202,230
$208,000
$312,000
Budgeted maintenance-hours
NA
842
1,203
682
Number of employees
50
NA
270
630
Using the step-down method, what amount of Maintenance Department cost will be allocated to Department B if the Maintenance Department cost is allocated first?
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