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Zetong Manufacturers has two service departments, Maintenance and Personnel. Maintenance Department costs of $336,053 are...

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Accounting

Zetong Manufacturers has two service departments, Maintenance and Personnel. Maintenance Department costs of $336,053 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $194,250 are allocated based on the number of employees. The costs of operating departments A and B are $200,000 and $300,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows:

Maintenance Department

Personnel Department

A

B

Budgeted costs

$336,053

$194,250

$200,000

$300,000

Budgeted maintenance-hours

NA

800

1,214

632

Number of employees

65

NA

280

630

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

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