Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly:

	Square Feet	Number of Employees
Janitorial Department	100	20
Cafeteria Department	10,000	10
Cutting Department	2,000	60
Assembly Department	8,000	20

If the Janitorial Department incurs costs of $200,000, how much of that cost is allocated to the Cutting Department?

a.$20,000

b.$19,800

c.$40,000

d.$160,000