The Dollar Store Has a Human Resources Department and a Janitorial

Multiple Choice

The Dollar Store has a Human Resources Department and a Janitorial Department that provide service to three sales departments. The Human Resources Department cost is allocated on the basis of employees, and the Janitorial Department cost is allocated on the basis of space. The following information is available: $\begin{array}{c}\begin{array}{lll}\\\\ \text {Budgeted cost}\\ \text {Space in square feet}\\ \text {Number of employees}\end{array}\begin{array}{c}\text { Human } \\\underline{\text { Resources }} \\ \$ 45,000 \\4,000 \\5\end{array}\begin{array}{r}\\\underline{\text { Janitorial }} \\\$ 30,000 \\1,000 \\10\end{array}\begin{array}{c}\\\underline{\text {Sales \#1}}\\\\20,000 \\15\end{array}\begin{array}{c}\\\underline{\text {Sales \#2}}\\\\30,000 \\45 \end{array}\begin{array}{c}\\\underline{\text {Sales \#1}}\\\\50,000 \\30\end{array}\end{array}$

Using the step-down method and assuming that the Human Resources Department is allocated first, the amount of Human Resources cost allocated to Sales Department no. 3 is:

A) $12,000.
B) $12,857.
C) $13,500.
D) $15,000.
E) $22,500.