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Jake's Battery Company has two service departments - Personnel and Maintenance. The Maintenance Department's costs...

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Accounting

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Jake's Battery Company has two service departments - Personnel and Maintenance. The Maintenance Department's costs of $160,000 are allocated on the basis of standard hours used. The Personnel Department's costs of $40,000 are allocated based on the number of employees. The costs of the operating Departments A and B are $80,000 and $120,000, respectively. Data on standard service hours and number of employees are as follows: 35. What is the cost of the Personnel Department allocated to Department A using the step-down method? a. $10,000 b. $16,000 c. $23,333 d. $30,000

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