Hanung Corp has two servicedepartments, Maintenance and Personnel. Maintenance Department costs of$360,000 are allocated on...
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Accounting
Hanung Corp has two servicedepartments, Maintenance and Personnel. Maintenance Department costs of$360,000 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$188,000 and$282,000, respectively. Data on budgeted maintenancehours and number of employees are asfollows:
Support Departments
Production Departments
Maintenance Department
Personnel Department
A
B
Budgeted costs
$360,000
$110,000
$188,000
$282,000
Budgeted maintenancehours
NA
880
1,230
680
Number of employees
60
NA
290
630
Using the directmethod, what amount of Maintenance Department costs will be allocated to DepartmentB? (Do not round any intermediarycalculations.)
A.
$167,330
B.
$128,168
C.
$87,742
D.
$100,398
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