Veneer Company Has Two Service Departments and Two Producing Departments

Multiple Choice

Veneer Company has two service departments and two producing departments. The number of employees in each department is:
$\begin{array}{lr}\text { Personnel } & 10 \\\text { Cafeteria } & 25 \\\text { Producing Department A } & 265 \\\text { Producing Department B } & \underline{ 250} \\&\underline{550}\end{array}$

The department costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $37,125 during a given period, the amount of cost allocated (rounded to two decimal places) to Department B under the direct method would be:

A) $0.
B) $17,187.50.
C) $16,875.00.
D) $18,021.84.