Diane's Pottery Manufacturing Company Has Two Support Departments, Maintenance Department

Multiple Choice

Diane's Pottery Manufacturing Company has two support departments, Maintenance Department and Personnel Department, and two producing departments, X and Y. The Maintenance Department costs of $30,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $4,500 are allocated on the basis of number of employees. The direct costs of Departments X and Y are $9,000 and $15,000, respectively. Data on standard service hours and number of employees are as follows: $\begin{array}{lcccc}&\text { Maint. } & \text { Person. } & \text { Dept. } & \text { Dept. } \\&\text { Dest. } & \text { Dept. } & \underline{X} & \underline{Y}\\\text { Standard service hours used } & 100 & 75 & 600 & 300 \\\text { Number of employees } & 50 & 100 & 150 & 150 \\\text { Direct labor hours } & 125 & 125 & 500 & 250\end{array}$
What are the total overhead costs associated with Department Y after allocating the Maintenance and Personnel Departments using the direct method?

A) $15,000
B) $27,250
C) $25,000
D) $17,250