Gomez Company Has Two Service Departments,Maintenance and Personnel

Multiple Choice

Gomez Company has two service departments,Maintenance and Personnel.Gomez Company also has two production departments,Mixing and Finishing.Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees.The following information has been gathered for the current year: If the step-down method is used to allocate service department costs,and the Maintenance Department is allocated first,the amount of costs allocated from the Maintenance Department to the Mixing Department is ________.

A) $36,000
B) $42,000
C) $42,750
D) $63,000