QuickMake, Inc. has two operating departments and two service departments. Each operating department conducts operations relatively independently. The company uses number of employees to allocate HR costs and the number of transactions processed (given in 1,000s) to allocate IT costs. Current data are given below. What amount of IT cost should be allocated to the production department using the step down method? Support Departments Operating Departments HR IT Production Marketing $ 10,500 $ 9,450 $ 100,000 $ 50,000 Costs incurred before inter- departmental cost allocations Support work of Personnel Number of employees Support work of IT Transactions(in 1,000s) 20 20 140 60 200 250 8,000 1,000 a. $7,493.80 b. $9,248.48 oc. $8,000.00 od. $8,400.00