The James Corporation has four departments with data as follows: Service Departments Operating Department CafeteriaMaintenance MillingFinishingBudgeted costs$12,000$10,000 $42,000$38,000Number of employees1210 8466Labor hours1,5001,250 5,2504,750? ? ?Cafeteria costs are allocated on the basis of number of employees. If the step-down method is used with costs of the Cafeteria allocated first, the amount of cost allocated from the Cafeteria to Maintenance would be:
A. $0
B. $625
C. $750
D. $698
Answer: C
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