Cervantes Industries Provides an In-House Cafeteria for Production and Administrative

Multiple Choice

Cervantes Industries provides an in-house cafeteria for production and administrative employees. This service costs $25,000 per month, plus $3 per meal served. The company has 800 production employees and 400 administrative employees. During the past month 5,500 meals were served to production employees and 2,000 to administrative.
The amount of cost allocated to the administrative department using actual meals served as the basis is:

A) $16,675
B) $12,667
C) $14,325
D) $18,500