Korano Manufacturing Company Ltd has two production departments (Assembly and Finishing) and two support departments (Janitorial and Personnel). The usage of the two support departments is as follows:

User of SupportPersonnelJanitorial

Personnel5%

Janitorial10%

Assembly60%40%

Finishing30%55%

The budgeted costs in the support departments were as follows:

Personnel$ 90 000

Janitorial$ 50 000

Using the direct method, what is the Janitorial Department cost allocated to the Assembly Department?

Select one:

$20 000

$21 053

$27 500

$30 000