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 $238,000 Budgeted fixed costs $35,000 Budgeted labor hours 14,000 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 allocatea to Department K? O a. 527.300 Ob. 526.325 Oc. 523.950 Od. 5.375