Question
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenancehours. Personnel Department costs
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenancehours.
Personnel Department costs of $140,000 are allocated based on the number of employees. The costs of operating departments A and B are $184,000 and $276,000, respectively. Data on budgeted maintenancehours and number of employees are as follows:
Support Departments | Production Departments | |||
Maintenance Department | Personnel Department | A | B | |
Budgeted costs | $320,000 | $140,000 | $184,000 | $276,000 |
Budgeted maintenancehours | NA | 900 | 1,300 | 670 |
Number of employees | 75 | NA | 210 | 680 |
Using the direct method, what amount of Maintenance Department costs will be allocated to Department B? (Do not round any intermediary calculations.)
A. $74,704
B. $93,868
C. $156,447
D. $108,832
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