Smith Corporation
Smith Corporation Has Two Service Departments: Data Processing

Smith Corporation
Smith Corporation has two service departments: Data Processing and Personnel.Data Processing provides more service than does Personnel.Smith Corporation also has two production departments: A and B.Data Processing costs are allocated on the basis of assets used while Personnel costs are allocated based on the number of employees.
$\begin{array}{lccc}\underline{\text { Department }}& \underline{\text { Direct costs }}&\underline{\text { Employeess }}&\underline{ \text { Assetsussec}}\\{\text { Data Processing }}& \$ 1,000,000 & 15 & {\$ 700,000} \\\text { Personnel } &300,000 & 8& 230,000 \\\text { A } &500,000 & 12 & 125,000 \\\text { B } &3300,000 & 20& 220,000\end{array}$


Refer to Smith Corporation.Using the direct method,what amount of Personnel costs is allocated to B (round to the nearest dollar) ?

A) $123,750
B) $206,250
C) $112,500
D) $187,500