Reference no: EM132466203

problem 1. Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $400,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $120,000 are allocated based on the number of employees. The costs of operating departments A and B are $208,000 and $312,000, respectively.

Data on budgeted maintenance-hours and number of employees are as follows:

                                               Maintenance Dept.                Personnel Dept.           Dept. A           Dept. B

Budgeted costs                       $400,000                       $120,000                  $208,000       $312,000

Budgeted maintenance hours.     N/A                               850                         1250               640

Number of employees                  65                              N/A                          220                  630

Question 1: Using the step-down method, what amount of Personnel Department cost will be allocated to Department B if the Maintenance Department is allocated first? (Round up)