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W Polhts) Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department overhead costs of $160,000 are allocated on the basis of budgeted
W Polhts) Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department overhead costs of $160,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department overhead costs of $40,000 are allocated based on the number of employees. The overhead costs of operating departments A and B are $80,000 and $120,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Production Departments Budgeted overhead costs | Budgeted maintenance-hours Number of employees Support Departments Maintenance Personnel Department Department $160,000 NA 42 20 NA $40,000 $80.000 480 $120.000 Using the direct mettfod, what amount of Personnel Department overhead costs will be allocated to Department B? O a) $10,000 Ob) $16,000 O c) $24,000 d) $30,000
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