Ransall Auto Parts Has Two Service Departments-Maintenance and Personnel, and Three

Multiple Choice

Ransall Auto Parts has two service departments-maintenance and personnel, and three production departments-fabrication, assembly, and packaging. Service costs are allocated to producing departments using the direct method. Information on overhead in each department and possible allocation bases appear below: $\begin{array}{lrrrrr}&\text { Maintenance }&\text {Personnel}&\text { Eabrication }&\text {Assembly}&\text {Packaging }\\\hline\text { Cost } & \$ 90,000 & \$ 130,000 & & & \\\text { Machine hours } & & & 12,000 & 30,000 & 18,000 \\\text { Employees } & 4 & 16 & 24 & 30 & 20\end{array}$ Using the most logical activity base, how much maintenance cost will be allocated to packaging?

A) $3,600
B) $27,000
C) $33,750
D) $30,000