Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $360,000 are...
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Accounting
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $360,000 are allocated on the basis of budgeted maintenancehours. Personnel Department costs of $150,000 are allocated based on the number of employees. The costs of operating departments A and B are $204,000 and $306,000, respectively. Data on budgeted maintenancehours and number of employees are as follows:
Support Departments
Production Departments
Maintenance Department
Personnel Department
A
B
Budgeted costs
$360,000
$150,000
$204,000
$306,000
Budgeted
maintenancehours
NA
860
1,200
620
Number of employees
70
NA
280
700
Using the direct method, what amount of Maintenance Department costs will be allocated to Department B? (Do not round any intermediary calculations.)
A. $122,637
B. $104,242
C. $83,284
D. $ 173,736
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