Question 8 options:

a)$71,111

b)$20,000

c)$60,000

d)$66,667

e)$22,222

ABC Company has two service departments (Power and Maintenance) and two operating departments (Assembly and Finishing). The direct allocation method is used to assign service department costs to the operating departments. The allocation base for the power costs is kilowatt hours; the allocation base for the maintenance costs is repair hours. Assume the following information: Assembly $100,000 $150,000 $75,000 $50,000 10,000 90,000 100,000 2,500 2.000 What would be the Maintenance Department allocation to the Finishing Department