A company has two service departments, Human Resources (HR) and Information Technology (IT). The HR department costs of $150,000 are allocated on the basis of the number of employees. The IT department costs of $200,000 are allocated based on the IT service hours. The costs of operating departments X and Y are $250,000 and $180,000, respectively. Data on budgeted number of employees and IT service hours are shown below.

	Service Department		Operating Department
	HR	IT	X	Y
Budgeted costs	$150,000	$200,000	$250,000	$180,000
Budgeted IT hours	N/A	400	450	300
Number of employees	20	N/A	120	90

Under the direct method, what amount of IT department costs will be allocated to Department Y?

A. $85,714 B. $83,721 C. $80,000 D. $52,174