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The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $300,000 are allocated on the basis of machine hours.

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The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $300,000 are allocated on the basis of machine hours. The Accounting Department's costs of $120,000 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $300,000 and $500,000, respectively. B Maintenance Accounting A B Machine hours 480 20 2,300 200 Number of employees 2 2 8 4 00 What is the Maintenance Department's cost allocated to Department A using the direct method? A) $92,000

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