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What is the accounting department cost allocated

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The RAH Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $300,000 are allocated on the basis of machine hours. The Accounting Department's costs of $120,000 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $300,000 and $500,000, respectively.

Question 1: What is the Accounting Department's cost allocated to Department B using the direct method?

Select one:

a. $20,000.

b. $10,000.

c. $80,000.

d. $40,000.

Reference no: EM132562651

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