Hanung 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	500	800	1,200	600
Number of employees	50	30	200	600

Using the step-down method, what amount of Personnel Department cost will be allocated to Department B given that Maintenance Department is the most general support department.

Question 3 options:

	$50,167
	$70,588
	$75,000
	$144,231