Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Brandeis Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows:

-Under the step-method of allocation, the total amount of service costs allocated to producing departments would be:

A) $118,000
B) $160,000
C) $140,000
D) $40,000