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Using the direct method, what amount of Maintenance Department costs will be allocated to ...

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Accounting

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Using the direct method, what amount of Maintenance Department costs will be allocated to

Department B?

Bev's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $160,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $40,000 are allocated based on the number of employees. The costs of operating departments A and B are $80,000 and $120,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Production Departments A B Support Departments Maintenance Personnel Department Department $160,000 $40,000 NA 400 20 NA Budgeted costs Budgeted maintenance-hours Number of employees $80,000 $120,000 480 320 80 240

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