Hanung Corp Has Two Service Departments,Maintenance and Personnel

question 117

Multiple Choice

Hanung Corp has two service departments,Maintenance and Personnel.Maintenance Department costs of $300,000 are allocated on the basis of budgeted maintenance-hours.Personnel Department costs of $170,000 are allocated based on the number of employees.The costs of operating departments A and B are $188,000 and $282,000,respectively.Data on budgeted maintenance-hours and number of employees are as follows:

Using the direct method,what amount of Personnel Department costs will be allocated to Department B? (Do not round any intermediary calculations. )

• A)$44,737
• B)$50,000
• C)$107,368
• D)$120,000