1. Company ABC has two service department, Maintenance and Personnel. Maintenance Department costs of 320,000 are allocated on the basis of budged maintenance-hours. Personnel Department cost of $80,000 are allocated based on the number of employees. The costs of operating department A and B are $160,000 and 24,000, respectively. Data on budgeted maintenance-hours and number of employees are follows:

Support department Production department

	Maintenance	Personnel	A	B
Budgeted costs	320,000	80,000	160,000	240,000
Budgeted maintenance-hours	N/A	800	960	640
Number of employees	40	N/A	160	480

Using step down method, what amount of Maintenance Department cost will be allocated to Department A and Department B?

1. 160,000;96,000; and 64,000
2. 106,000; 128,000 and 85,000
3. 160,000 250,000 and 64,000
4. 160,000:100,000 and 96,000