(Appendix 4B)Parker Company Has Two Service Departments-Cafeteria and Engineering-And Two

Multiple Choice

(Appendix 4B) Parker Company has two service departments-cafeteria and engineering-and two operating departments.The number of employees in each department is given below:

The costs of the Cafeteria are allocated to other departments on the basis of the number of employees in the departments.If these costs are budgeted at $69,375,what would be the amount of cost allocated to Engineering under the direct method?

A) $0.
B) $3,700.
C) $3,750.
D) $17,344.