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

Maintenance 60,000

Department A 5,000

Department B 20,000

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 Administration costs allocated to Department B is:

	a.	$24,000
	b.	$39,000
	c.	$30,309
	d.	$60,619