Use this information for ABC Corporation to answer the question that follow. ABC Corporation has three service departments with the following costs and cost drivers:

Service Department Cost Cost Driver

Graphics Production $200,000 Number of copies made

Accounting 500,000 Number of invoices processed

Personnel 400,000 Number of employees

ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost, and activity information is as follows:

Micro Macro Super

Revenues $700,000 $850,000 $650,000

Direct operating expenses $50,000 $70,000 $100,000

Number of copies made 20,000 30,000 50,000

Number of invoices processed 700 800 500

Number of employees 130 145 125

What is the service department allocation rate for the Personnel Department?

a. $3,200 per employee

b. $3,077 per employee

c. $1,000 per employee

d. $2,758 per employee