Rust Company Has Two Support Departments (S1 and S2) and Two

Multiple Choice

Rust Company has two support departments (S1 and S2) and two producing departments (X and Y) . Department S1 serves departments S2, X, and Y in the following percentages, respectively: 10%, 35%, 55%. Department S2 serves departments S1, X, and Y in the following percentages, respectively: 6%, 50%, and 44%. Direct department costs for S1, S2, X, and Y are $15,000, $8,000, $105,000, and $97,500, respectively.
-Refer to the figure.What are the total costs to be allocated from Department S1?

A) $800
B) $9,500
C) $15,000
D) $15,573