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

Multiple Choice

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 direct-method of cost allocation,the amount of S1 costs allocated to P1 would be:

A) $20,000.
B) $6,000.
C) $30,000.
D) $62,500.