The Dahle Manufacturing Company has two production departments (Assembly and Finishing) and two service departments (Human Resources and Janitorial). The projected usage of the two service departments is as follows: Use of Human ResourcesUse of JanitorialHuman resource --- 5%Janitorial 10% --- Assembly 60% 40%Finishing 30% 55%The budgeted costs in the service departments are: Human Resources, $90,000 and Janitorial, $50,000.Using the step-down method and assuming the Human Resources Department is allocated first, the amount of Human Resources cost allocated to the Assembly Department is:
A. $21,053.
B. $54,000.
C. $28,947.
D. $60,000.
E. $78,842.
Answer: B
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