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Support Departments Production Departments Power. Maintenance Assembly Machining Direct costs S62,500 $40,000 $25,000 $15,000 Actual activity: Kilowatt hrs. 50,000 150,000 50,000 250 1.125 1.125 Maintenance

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Support Departments Production Departments Power. Maintenance Assembly Machining Direct costs S62,500 $40,000 $25,000 $15,000 Actual activity: Kilowatt hrs. 50,000 150,000 50,000 250 1.125 1.125 Maintenance hours 250 Fact Pattern: A company has two support departments, Power and Maintenance, and two production departments, Machining and Assembly. All costs are regarded as strictly variable. For September, the following information is available: If the company uses the direct method for allocating support department costs to production departments, what dollar amount of Power Department cost will be allocated to the Maintenance Department for September? .A.$0 .B.$8,000 .C.$15,625 .D.$12,500

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