HSU Corporation has two service departments, Maintenance and Administration, and two producing departments A and B.

The direct costs of each department for the last year is as follows:

Administration$80,000

Maintenance60,000

DepartmentA5,000

DepartmentB20,000

Information on the proportion of services supplied and used is:

User Departments

Administration

Maintenance

Dept. A

Dept. B

Administration

10%

60%

30%

Maintenance

30%

20%

50%

Using the reciprocal method of service department cost allocation, Administrations costs allocated to Department A is:

a.$58,800

b.$60,619

c.$98,000

d.$48,000