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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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