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Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are...

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Accounting

Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $170,000 are allocated based on the number of employees. The costs of operating departments A and B are $188,000 and $282,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Production Support Departments Departments

Maintenance Department

Personnel Department

A

B

Budgeted costs

$300,000

$170,000

$188,000

$282,000

Budgeted maintenance-hours

NA

860

1280

600

Number of employees

100

NA

250

600

Using the direct method, what amount of Personnel Department costs will be allocated to Department B? (Do not round any intermediary calculations.)

$50,000

$120,000

$44,737

$107,368

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