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.
What is the Maintenance Department's cost allocated to Department A using the direct method?
A) $92,000.
B) $230,000.
C) $276,000.
D) $386,400.
Correct Answer:
Verified
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