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Joe's Tire Company has two support departments, Personnel and Maintenance

Accounting

Joe's Tire Company has two support departments, Personnel and Maintenance. The Maintenance Department costs of $60,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $20,000 are allocated based on the number of employees. Costs of Departments A and B are $40,000 and $60,000, respectively. 
Data on standard service hours and number of employees are as follows: 
Maintenance Dept. ersonnel ei: Production Dept. A Production Dept. B Standard service hours used 200 00 240 160 Number of employees 10 0 40 120 
How much of the Personnel Department is allocated to Department B using the direct method? 
0 $5.000 0 $60.000 0 $8,000 0 $15,000 0 $12.632 
 

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