Hanung Corp has two servicedepartments, Maintenance and Personnel. Maintenance Department costs of$350,000 are allocated on...
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Accounting
Hanung Corp has two servicedepartments, Maintenance and Personnel. Maintenance Department costs of$350,000 are allocated on the basis of budgeted maintenancehours. Personnel Department costs of$110,000 are allocated based on the number of employees. The costs of operating departments A and B are$184,000 and$276,000, respectively. Data on budgeted maintenancehours and number of employees are asfollows:
Support Departments
Production Departments
Maintenance Department
Personnel Department
A
B
Budgeted costs
$350,000
$110,000
$184,000
$276,000
Budgeted maintenancehours
NA
840
1,230
630
Number of employees
55
NA
290
650
Using the stepdown method, what amount of Maintenance Department cost will be allocated to Department A if the service department with the highest percentage of interdepartmental support service is allocatedfirst? (Do not round any intermediarycalculations.)
A.
$50,111
B.
$159,444
C.
$231,452
D.
$121,677
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