The James Corporation has four departments with data as follows: Service Departments Operating Department CafeteriaMaintenance MillingFinishingBudgeted costs$12,000$10,000 $42,000$38,000Number of employees1210 8466Labor hours1,5001,250 5,2504,750? ? ?Maintenance Department costs are allocated on the basis of labor hours. The amount of cost allocated to Milling from Maintenance under the direct method would be:
A. $5,700
B. $5,250
C. $6,720
D. $5,600
Answer: B
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