Mike’s Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $80,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows:Support DepartmentsProduction DepartmentsMaintenance DepartmentPersonnel DepartmentABBudgeted costs$320,000$80,000$160,000$240,000Budgeted maintenance-hoursNA800960640Number of employees40NA160480Using the direct method, what amount of Maintenance Department costs will be allocated to Department B? (10 points)Using the step-down method, what amount of Maintenance Department cost will be allocated to Department B if the service department with the highest percentage of interdepartmental support service is allocated first? (10 points)
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