Answer the following questions using the information below:

Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $420,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $90,000 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 departm

production department

	maintenance department	personnel department	A	B
Budgeted costs	$420000	$90000	$160000	$240000
Budgeted maintenance hours	NA	800	960	640
Number of emplyees	40	NA	160	480

1. Using the direct method, what amount of Maintenance Department and Personnel Department costs will be allocated to Department A & B?

a. $96000 & $64000; $20000 & $50000

b. $252000 & $168000 ; $22500 & $67500

c $156000 & $132000 ; $30000 & $70000

d None of these

2. Using the step-down method, what amount of Maintenance Department cost will be allocated to Department A and department B

a. $64000 and $130000

b. $168000 and $111972

c. $114667 and $76092

d. none of these

3. Using the step-down method what amount of Peronnel Department cost will be allocated to Department A And Department B

a. $57507 and $172500

b. $85333 and $139992

c. $114667 and $57890

d. None of these