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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

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

NA

800

1,200

600

Number of employees

50

NA

200

600

Use the direct method to allocate maintenance and personnel department costs to the production departments. Show the total costs of the production departments.

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