In establishing a facility cost pool, the following budgeted costs for the year were included;

Utilities to Heat theBuilding$250,000

Janitorial Services and Supplies $50,000

Building Maintenance$100,000

The company decides to calculate the predetermined overhead rate using budgeted Direct Labor Hours of 20,000 hours for the year.

In January, Product B consumes 1,000 of Direct Labor Hours. The company will allocate $____________ of facility overhead cost to Product B:

A.$2,000

B.$20,000

C.$1,000

D.$200,000