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Koreen Manufacturing Co. has three production departments. Koreen allocates maintenance costs to the departments based on their use of machine hours. The maintenance cost for March was $180,000. The departments useage of labour and machine hours in March were:
Department Machine hours Labor hoursA 500 3,000B 500 5,000C 800 2,000
How much maintenance cost should be allocated to the department B for March?
A) $50,000B) $90,000C) $60,000D) $64,285
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