Ballistic Company Uses Two Producing Departments (A and B) and Two

Ballistic Company uses two producing departments (A and B) and two service departments (S1 and S2) . The costs incurred in S1 and S2 are allocated to Departments A and B and included in their factory overhead rates for costing products. S1 costs are allocated based on the number of employees, S2 costs are allocated based on direct labor hours, and the production departmental overhead rates are also based on direct labor hours. The following data are available for a recent period: Assuming S2 Service Department is allocated first, what is the cost allocated to S1 Service Department, Department A, and Department B?

A) Service department S1 = $3,600, Department A = $18,000, Department B = $14,400
B) Service department S1 = $7,200, Department A = $36,000, Department B = $28,800
C) Service department S1 = $1,800, Department A = $ 9,000, Department B = $ 7,200
D) Service department S1 = $3,800, Department A = $16,000, Department B = $13,600