A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: Budgeted variable costs Budgeted fixed costs Budgeted labor hours If Department K plans to use 1,350 hours of the service department's service in the coming year, how much of the service department's cost is allocated to Department K? $238,000 $35,000 14,000 a. $23,950 b. $27,300 c. $3,375 Od. $26,325