Exhibit 3-3
Metro Inc.has two production departments (Lamination and Molding)and three service departments (Human Resources,Technology Support,and Purchasing).Service department costs are allocated to production departments using the direct method.The $200,000 costs of Human Resources are allocated based on the number of employees in each production department.The $400,000 costs of Technology Support are allocated based on hours of technology support used by each production department.The $120,000 of Purchasing is allocated on the pounds of raw materials purchased for each production department.Information for each production department is as follows:

\begin{array}{lccc}&\text { Number of } & \text { Technology } & \text { Pounds of } \\&\text { Employees } & \text { Support Hours } & \text { Raw Materials } \\\hline\text { Lamination } & 40 & 600 & 30,000 \\\text { Molding } & \underline{120} & \underline{2,400} & \underline{70,000} \\\text { Total } & \underline{160} & \underline{3,000} & \underline{100,000}\end{array}

-Refer to Exhibit 3-3.Using the direct method of allocating service department costs to production departments,how much of the Technology Support service department costs should be allocated to the Lamination Department?
A)$40,000
B)$160,000
C)$80,000
D)$320,000
E)None of the answer choices is correct.

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