Parker Company Has Two Service Departments, Cafeteria and Engineering, and Two

Multiple Choice

Parker Company has two service departments, cafeteria and engineering, and two operating departments. The number of employees in each department is given below:
The costs of the Cafeteria are allocated to other departments on the basis of the number of employees in the departments. If these costs are budgeted at $69,375, the amount of cost allocated to Engineering under the direct method would be:

A) $0
B) $3,700
C) $3,750
D) $17,344