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Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $80,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Matince-------------personal-------a--------------b
Budg cost 32000--------80000-----160000-----240000 Budg maint hours na-------------800----------960----------640
Number of employess 40-------------na-----------160---------480
Using the direct method, what amount of Maintenance Department costs will be allocated to Department B?
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