M&P Tool has three service departments that support the production area. Outlined below is the estimated overhead by department for the upcoming year.

Service Departments  Estimated Overhead  Number of Employees

Receiving          $25,000                 2

Repair            35,000                 2

Tool             10,000                 1

Production Departments  

Assembly         25

Bolting           12

The Repair Department supports the greatest number of departments, followed by the Tool Department. Overhead cost is allocated to departments based upon the number of employees.

Using the direct method of allocation, how much of the Repair Department's overhead will be allocated to the Tool Department?

A. $875

B. $7,000

C. $0

D. $11,667