Cordner Corporation Has Two Production Departments: P1 and P2 and Two

Multiple Choice

Cordner 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 cost allocation,the amount of S2 costs allocated to S1 would be:

A) $40,000.
B) $20,000.
C) $0.
D) $42,000.