Oaks Company Has Two Support Departments, Maintenance Department (MD) and Personnel

Multiple Choice

Oaks Company has two support departments, Maintenance Department (MD) and Personnel Department (PD) , and two producing departments, P1 and P2. The Maintenance Department costs of $30,000 are allocated on the basis of standard service used. The Personnel Department costs of $4,500 are allocated on the basis of number of employees. The direct costs of Departments P1 and P2 are $9,000 and $15,000, respectively.
Data on standard service hours and number of employees are as follows:
$\begin{array}{lrrr}&\text { MD}&\text { PD}&\text { P1}&\text { P2}\\\text { Standard service hours used } & 100 & 50 & 300 &150\\\text { Number of employees } & 10 & 20 & 90&90\\\\\text { Direst lahour houre }&50&50&250&250\end{array}$

-Refer to the figure.Using the direct method,what is the cost of the Personnel Department allocated to Department P1?

A) $2,132
B) $2,250
C) $2,700
D) $4,500