Hilton Hamlet Corp Using the Step-Down Method and Assuming Human Resources Cost Is

Multiple Choice

Hilton Hamlet Corp. has an Advertising Department and a Human Resources Department that provide service to three store locations. The Human Resources Department cost is allocated on the basis of employees, and the Advertising Department cost is allocated on the basis of space. The following information is available: $\begin{array} { l r r r r r } & \begin{array} { c } \text { Human } \\\text { Resources }\end{array} & \text { Advertising } & \text { Store \#1 } & \text { Store \#2 } & \text { Store \#3 } \\\text { Budgeted Cost } & \$ 30,000 & \$ 15,000 & & & \\\begin{array} { l } \text { Space in Square }\end{array} & 2,000 & 500 & 10,000 & 33,000 & 40,000 \\\text { feet } & \\\text { Number of } & 10 & 5 & 20 & 50 & 35\\\text { Employees } & & & & & \\\end{array}$ Using the step-down method and assuming Human Resources cost is allocated first, the amount of Advertising cost allocated to Store #2 is:

A) $5,789.
B) $5,964.
C) $6,506.
D) $7,500.
E) $11,579.