Triad Company has two support departments (Janitorial and Payroll) and two producing departments (Assembly and Finishing). The sequential allocation method is used to assign support department costs to the producing departments. Payroll costs are allocated first. A proxy for janitorial services is square footage; a proxy for payroll is number of employees. Assume the following information:

Janitorial Payroll Assembly Finishing

Direct costs...................... $250,000 $275,000

Square feet...................... 500 3,500 1,500

Number of employees..... 5 8 125 100

11. What would be the Payroll Department allocation to the Assembly Department?

a. $144,433

b. $149,457

c. $152,778

d. $172,639

e. none of the above