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The Housekeeping Department of Micanopy Hospital has direct costs of $600,000. The hospital's four patient service departments utilize the following amounts of space: Department A

The Housekeeping Department of Micanopy Hospital has direct costs of $600,000. The hospital's four patient service departments utilize the following amounts of space: Department A = 3,000 square feet, Department B = 2,000 square feet, Department C = 1,000 square feet, and Department D = 2,000 square feet. Assuming that the cost driver for housekeeping costs is the amount of occupied space, what is the allocation of housekeeping costs to Department A?

A. $250,000

B. $150,000

C. $175,000

D. $225,000

E. $325,000

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