The following information relates to Ray Corporation for the past accounting period.

Direct Costs

Service Dept A $ 85,000

Service Dept B 65,000

Producing Dept C 20,000

Producing Dept D 25,000

Proportion of service by A to: Proportion of service by B to: B 30% A 50% C 10% C 30% D 60% D 20% Using the simultaneous solution method, Department A's cost allocated to Department C is:

$13,824.

$8,500.

$117,500.

$13,300.