Serena Company Has Two Service Departments,Maintenance and Personnel

Multiple Choice

Serena Company has two service departments,Maintenance and Personnel.Serena 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: Assume the step-down method is used to allocate service department costs,and the Maintenance Department is allocated first.The amount of cost allocated from the Maintenance Department to the Finishing Department would be ________.

A) $31,500
B) $42,750
C) $47,250
D) $57,000