1. The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $457,500 are allocated on the basis of machine hours. The Accounting Department's costs of $236,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $310,000 and $510,000, respectively.

	Maintenance	Accounting	A	B
Machine hours	565	25	3,450	210
Number of employees	2	2	8	4

What is the Accounting Department's cost allocated to Department B using the direct method?

Multiple Choice

• $78,800.

• $19,700.

• $157,600.

• $39,400.