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Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $400,000 are allocated on the basis of budgeted maintenance - hours. Personnel
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $400,000 are allocated on the basis of budgeted maintenance - hours. Personnel Department costs of $170,000 are allocated based on the number of employees. The costs of operating departments A and B are $228,000 and $342,000, respectively. Data on budgeted maintenance - hours and number of employees are as follows: Production Departments A B Support Departments Maintenance Personnel Department Department $400,000 $170,000 NA 820 Budgeted costs Budgeted maintenance - hours Number of employees $228,000 $342,000 1,280 650 85 NA 280 660 Using the direct method, what amount of Maintenance Department costs will be allocated to Department B? (Do not round any intermediary calculations.) O A. $134,715 OB. $94,545 O C. $191,969 OD. $115,181
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