Casas Corporation has two service departments, Personnel and Cafeteria, and two operating departments, Customer Care and Customer Solutions. The number of employees in each department are: Personnel8Cafeteria7Customer Care32Customer Solutions11Total58 The fixed costs of the Personnel Department are allocated on the basis of the number of employees. If these costs are budgeted at $42,150, the amount of Personnel Department cost allocated to the Cafeteria under the step-down method would be closest to:
A. $19,670
B. $0
C. $5,901
D. $5,087
Answer: C
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