1. Answer the following questions using the information below:

   Company ABC has two service departments, Maintenance and Personnel.

   Maintenance Department costs of $300,000 are allocated based on budgeted maintenance-hours.

   Personnel Department costs of $100,000 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 Departments		Production Departments
   	Maintenance	Personnel	A	B
   Budgeted costs	$300,000	$100,000	$160,000	$240,000
   Budgeted maintenance-hours	NA	1,000	600	400
   Number of employees	40	NA	160	480

   Using the direct method, what amount of Maintenance Department and Personal Department costs will be allocated to Department A and B?

   	A.	None of them
   	B.	$96,000 and $64,000 $20,000 and $50,000
   	C.	$180,000 and $120,000 $25,000 and $75,000
   	D.	$192,000 and $128,000 $20,000 and $60,000