Castle Company Has Two Service Departments and Two User Departments

Multiple Choice

Castle Company has two service departments and two user departments.The number of employees in each department is: The fixed costs of the Personnel Department are allocated on a basis of the number of employees.If these costs are budgeted at $37,125 during a given period,the amount of cost allocated to the Cafeteria under the step method would be:

A) $0.
B) $1,718.75.
C) $1,687.50.
D) $1,802.18.