A company has two support departments, Power and Maintenance, and two production departments, Machining and Assembly. All costs are regarded as strictly variable. For September, the following information is available:

	Support Departments		Production Departments
	Power	Maintenance	Machining	Assembly
Direct costs	$62,500	$40,000	$25,000	$15,000
Actual activity:
Kilowatt hrs.		50,000	150,000	50,000
Maintenance hours	250		1,125	1,125

Question

If the company uses the direct method for allocating support department costs to production departments, what dollar amount of Power Department cost will be allocated to the Maintenance Department for September?

• A.$0

• B.$8,000

• C.$15,625

• D.$12,500