Castle Corporation Has Two Service Departments and Two Operating Departments

Multiple Choice

Castle Corporation has two service departments and two operating departments. The number of employees in each department are: The fixed costs of the Personnel Department are allocated on the basis of the number of employees. If these costs are budgeted at $37,125, the amount of cost allocated to the Cafeteria under the step-down method would be:

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