Hanung Corp Has Two Service Departments,Maintenance and Personnel

Multiple Choice

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 $200,000 are allocated based on the number of employees.The costs of operating departments A and B are $240,000 and $360,000,respectively.Data on budgeted maintenance-hours and number of employees are as follows:

Using the direct method,what amount of Personnel Department costs will be allocated to Department A? (Do not round any intermediary calculations. )

A) $58,824
B) $52,632
C) $70,588
D) $141,176