Lerna produces hydras in three production departments and needs to apportion budgeted monthly fixed costs between those departments. Budgeted costs are as follows ( $):

Rent	2,000
Rates	1,000
Plant insurance	1,000
Plant depreciation	10,000
Supervisor's salary	7,000
	21,000

The following additional information is available.

	Department A	Department B	Department C
Area (square feet)	3,800	3,500	700
Value of machinery ($000)	210	110	80
Number of employees	34	16	20

The total budgeted monthly fixed overhead cost for Department C is:

a.

$1,837.50

b.

$10,600.00

c.

$4,462.50

d.

$7,000.00