The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $536,250 are allocated on the basis of machine hours. The Accounting Department's costs of $151,200 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $240,000 and $440,000, respectively.

MaintenanceAccountingABMachine hours755952,400350Number of employees2284

What is the Maintenance Department's cost allocated to Department B(rounded to the nearest whole dollar) using the step method and assuming the Maintenance Department's costs are allocated first?

Multiple Choice

• $422,000.
• $514,000.
• $468,000.
• $65,971.