Koreen Manufacturing Co. has three production departments. Koreen allocates maintenance costs to the departments based on their use of machine hours. The maintenance cost for March was $180,000. The departments useage of labour and machine hours in March were:
Department Machine hours Labor hours
A 500 3,000
B 500 5,000
C 800 2,000
How much maintenance cost should be allocated to the department B for March?
A) $50,000
B) $90,000
C) $60,000
D) $64,285