How is c) the correct answer and not B ) ? For question 8 .

Questions 7-8 Charlotte's Battery Company has two service (support) departments, Maintenance and Personnel, and two production departments, A and B. Maintenance Department costs of E160,000 are allocated on the basis of budgeted maintenance-hours, that amount to 400 for the personnel department, 480 for production department A and 320 for production department B. Personnel Department costs of 640,000 are allocated based on the number of employees. There are 20 employees in the maintenance department, 80 in production department A and 240 in production department B. The costs of operating (production) departments A and B are 680,000 and (120,000, respectively. 7. Using the direct method, what amount of Personnel Department costs will be allocated to Department A? A) (16,000 B) (10,000 630,000 D) (24,000 8. Using the step allocation method, also known as specified order of closing or sequential method, what amount of Maintenance Department cost will be allocated to Production Department B? A) (32,000 B) 642,667 C) 657,334 D) (64,000