Godo (Appendix 11A) Parker Company has two service departments-cafeteria and engineering-and two operating departments. The number of employees in each department is givenbelow:CafeteriaEngineeringOperating Department 1Operating Department 2The costs of the Cafeteria are allocated to other departments on the basis of the numberof employees in the departments. If these costs are budgeted at $69,375, what would bethe amount of cost allocated to Engineering under the direct method?Multiple ChoiceO $0O $3,700$3,7501040500200O $17,344

The direct method of allocation is used to allocate the cost of the service department is allocated…

(Appendix 11A) Parker Company has two service departments-cafeteria and engineering- and two operating departments. The number of employees in each department is given below: Cafeteria Engineering Operating Department 1 Operating Department 2 10 40 500 200 The costs of the Cafeteria are allocated to other departments on the basis of the number of employees in the departments. If these costs are budgeted at $69,375, what would be the amount of cost allocated to Engineering under the direct method?