The Glowmeter Manufacturing Company Has Two Production Departments (Assembly and Finishing)

Multiple Choice

The Glowmeter Manufacturing Company has two production departments (Assembly and Finishing) and two service departments (Human Resources and Maintenance) . The projected usage of the two service departments is as follows: $\begin{array} { l r r } & \text { Use of Human } & \text { Use of } \\& \text { Resources } & \text { Maintenance } \\\text { Human Resources } & \text { N/A } & 10 \% \\\text { Maintenance } & 5 \% & \text { N/A } \\\text { Assembly } & 70 \% & 30 \% \\\text { Finishing } & 25 \% & 60 \%\end{array}$ The budgeted costs in the service departments are: Human Resources, $60,000 and Maintenance, $30,000. Using the direct method, the amount of Maintenance Department cost allocated to the Finishing Department is:

A) $0.
B) $3,000.
C) $18,000.
D) $20,000.
E) $40,000.