q 11

Flat's Tire Company has two support departments, Personnel and Maintenance. The Maintenance Department costs of $75,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $30,000 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: Production Dept. A Production Dept. B Standard service hours used Number of employees Maintenance Dept. 200 10 Personnel Dept 200 20 338 40 182 120 How much of the cost of the Maintenance Department is allocated to Department B using the direct method? O A. $32,000 OB. $10,500 O C. $26,250 OD. $48,750 O E. $19,500