Veneer Company has two service departments and two producing departments. The number of employees in each department is:

Personnel	10
Cafeteria	25
Producing Department A	265
Producing Department B	250
	550

The department costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $37,125 during a given period, the amount of cost allocated to Department B under the direct method would be:

a. $16,875.00.

b. $17,187.50.

c. $18,021.84.

d. $0.