Hanung Corp has two service departments, Maintenance and Personnel. The Maintenance Department costs of $360,000 are allocated on the basis of budgeted maintenance-hours. The Personnel Department costs of $110,000 are allocated based on the number of employees. The costs of operating departments A and B are $188,000 and $282,000, respectively. The data on budgeted maintenance-hours and the number of employees are as follows:
Support Departments:
- Maintenance Department: $360,000
- Personnel Department: $110,000
Production Departments:
- Department A: $188,000
- Department B: $282,000
Budgeted maintenance-hours:
- Maintenance Department: N/A
- Department A: 880
- Department B: 1,230
Number of employees:
- Department A: 60
- Department B: 290
- Department B: 630
Using the direct method, what amount of Maintenance Department costs will be allocated to Department B?
a. $100,398
b. $128,168
c. $87,742
d. $167,330