Landslide Company Has Two Service Departments,Maintenance and Human Resources If the Step-Down Method Is Used to Allocate Service Department

Multiple Choice

Landslide Company has two service departments,Maintenance and Human Resources.Landslide Company also has two production departments,Mixing and Finishing.Maintenance costs are allocated based on square footage while Human Resources costs are allocated based on number of employees.The following information has been gathered for the current year:
$\begin{array}{lllll}&&\text { Human }\\&\text { Maintenance } &\text { Resources } & \text { Mixing } & \text { Finishing }\\\text { Direct costs } & \$ 126,000 & \$ 84,000 & \$ 105,000 & \$ 175,000 \\\text { Square footage } & 800 & 400 & 1,600 & 1,200 \\\text { Number of employees } & 8 & 12 & 24 & 32\end{array}$
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