Use the Information Below to Answer the Following Question(s)

Multiple Choice

Use the information below to answer the following question(s) .
Joe's Tire Company has two support departments, Personnel and Maintenance. The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $20,000 are allocated based on the number of employees. Costs of Departments A and B are $40,000 and $60,000, respectively.
Data on standard service hours and number of employees are as follows:

-What is the cost of the Maintenance Department allocated to Department A using the step-down method if the Personnel Department is allocated first?

A) $8,000
B) $4,706
C) $5,000
D) $12,000
E) $14,118