The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $867,300 are allocated on the basis of machine hours. The Accounting Department's costs of $135,600 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $270,000 and $470,000, respectively.

	Maint	Acctg	A	B
Machine hours	655	110	3,750	380
Number of employees	2	2	8	4

What is the Maintenance Department's cost allocated to Department A using the direct method?

$741,500.

$787,500.

$603,500.

$897,900.