Parker Corporation 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 Cafeteria cost allocated to Engineering under the direct method would be closest to:
A) $0
B) $3,700
C) $3,750
D) $17,344
Correct Answer:
Verified
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