10. The Mohawk-Hudson Company is an electric utility which has two Transmission. The department costs. Maintenance hours. Accounting Department costs are allocated to operating Accounting and Maintenance. It has two operating departments, Generation and e company does not distinguish between fixed and variable service Department costs are allocated on the basis of maintenance service departments, departments on the basis of accounting hours of service provided. Budgeted costs and other data for the coming year are as follows: Accounting Maintenance Generation Transmission 4,800 3.500 Budgeted costs $200.000 $600,000 7.200 4.500 $100.000 Maintenance hours 600 2.000 Accounting hours 500 The step-down method is used to allocate service department costs, with the accounting department being allocated first. The amount of Maintenance Department cost a the Generation Department would be: llocated to A. $132,000 B. $123,750 C. $150,685 D. $140,000