Company X

has two support departments, Maintenance and Personnel. Maintenance Department

(MD) costs of €360196 are allocated on the basis of budgeted

maintenance-hours. Personnel Department (PD) costs of €170 000 are allocated

based on the number of employees. The costs of operating departments A and B

are €200 000 and €300 000, respectively. Data on budgeted maintenance-hours and

number of employees are as follows:

Using the direct method, what amount of Maintenance Department costs

will be allocated to Department B?