Hillary Corporation Has Two Service Departments (Human Resources and Accounting

Multiple Choice

Hillary Corporation has two service departments (Human Resources and Accounting & Finance) and two production departments (Machining and Assembly) . The company allocates Human Resources cost on the basis of square footage and believes that Human Resources provides more service than Accounting & Finance. The square footage occupied by each department follows. $\begin{array} { l l } \text { Human Resources } & 12,000 \\\text { Accounting and Finance } & 15,000 \\\text { Machining } & 40,000 \\\text { Assembly } & 26,000\end{array}$ Assuming use of the direct method, over how many square feet would the Accounting and Finance cost be allocated?

A) 12,000.
B) 27,000.
C) 66,000.
D) 81,000.
E) 93,000.