The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $449,500 are allocated on the basis of machine hours. The Accounting Department's costs of $138,000 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $350,000 and $550,000, respectively.

	Maintenance	Accounting	A	B
Machine hours	675	45	2,850	250
Number of employees	2	2	8	4

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

• $35,731.

• $413,250.

• $367,250.

• $459,250.