The managers of Rochester Manufacturing are discussing ways to allocate the costs of service departments, such as Quality Control and Maintenance, to the production departments. To aid them in this discussion, the controller has provided the following information:

	Quality Control	Maintenance	Machining	Assembly	Total
Budgeted overhead costs before allocation	$350,000	$200,000	$400,000	$300,000	$1,250,000
Budgeted machine hours	--	--	50,000	--	50,000
Budgeted direct labor hours	---	---	--	25,000	25,000
Budgeted hours of service:
Quality control	---	7,000	21,000	7,000	35,000
Maintenance	10,000	---	18,000	12,000	40,000

If Rochester uses the direct method of allocating service department costs, the total service costs allocated to the assembly department would be:

A) $80,000

B) $87,500

C) $120,000

D) $167,500

Please Show All Steps. Thank You.