Joe's Tire Company has two support departments, Personnel and Maintenance. The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $20,000 are allocated based on the number of employees. Costs of Departments A and B are $40,000 and $60,000, respectively.

Data on standard service hours and number of employees are as follows:

	Maintenance Dept.	Personnel Dept.	Production Dept. A	Production Dept. B
Standard service hours used	200	200	240	160
Number of employees	10	20	40	120

What is the cost of the Maintenance Department allocated to Department B using the stepdown method if the support department with the highest percentage of interdepartmental service to the other support department is allocated first?

A. $16,000

B.$48,000

C.$12,800

D.$21,333

E.$32,000

How much of the cost of the Personnel Department is allocated to Department B using the direct method?

A.$12,632

B.$5,000

C.$8,000

D.$15,000

E. $60,000

How much of the cost of the Personnel Department is allocated to Department A using the direct method?

A.$4,211

B.$5,000

C.$12,632

D.$15,000

E.$40,000

How much of the cost of the Maintenance Department is allocated to Department B using the direct method?

A.$24,000

B.$60,000

C.$32,000

D.$16,000

E.$12,800