Answer the following questions using the information below:

Company ABC has two service departments, Maintenance and Personnel.

Maintenance Department costs of $300,000 are allocated based on budgeted maintenance-hours.

Personnel Department costs of $100,000 are allocated based on the number of employees.

The costs of operating departments A and B are $160,000 and $240,000, respectively.

Data on budgeted maintenance-hours and number of employees are as follows:

	Support Departments		Production Departments
	Maintenance	Personnel	A	B
Budgeted costs	$300,000	$100,000	$160,000	$240,000
Budgeted maintenance-hours	NA	1,000	600	400
Number of employees	40	NA	160	480

Using the step-down method, what amount of Personal Department cost will be allocated to Departments A and Department B?

	A.	$160,000 and $96,000
	B.	$62,500 and $187,500
	C.	$60,00 and $180,000
	D.	None of them