Patterson Lawn Co. is the primary provider of lawn care maintenance in the city of Jasper. The Company has two operating departments, one that performs lawn care services for commercial properties and one that services residential properties. Both operating departments are supported by two service departments, administrative and machine maintenance. Costs for each of these supporting departments are as follows:

	Administrative		Machine Maintenance
Total cost	$150,000		$225,000

The following estimates that are related to the operating departments is as follows:

	Commercial				Residential				Machine Maintenance			Total
	properties				properties
# of employees		40				20				15			75
# of customers		125				160				n/a			285
# of billable hours		3,000				2,000				n/a			5,000
Total overhead cost	$	425,000			$	350,000				n/a		$	775,000

The Company uses the step method for cost allocation as the administrative service department also provides services to the machine maintenance department. Assume that costs are allocated between service departments based on the # of employees. Using the information provided, what is the total amount of machine maintenance cost that will be allocated to the operating departments?

Multiple Choice

• $30,000

• $255,000

• $80,000

• $100,000