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Bolton Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs

Bolton Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $300,000 are allocated on the basis of 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 Department

Personnel Department

A

B

Budgeted costs

$300,000

$100,000

$160,000

$240,000

Budgeted maintenance-hours

NA

800

1,200

600

Number of employees

50

NA

200

600

Under full reciprocal method, what is the total cost of Department B after allocation of service department costs? (Round up ratios to the 4th decimal point, and $ amount to the 2nd decimal point )

Question 1 options:

$444,991.63

$450,151.98

$379,830.00

$210,151.98

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