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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