Sharon Manufacturing
the Sharon Manufacturing Company Has Two Service Departments

Sharon Manufacturing
The Sharon Manufacturing Company has two service departments and two producing departments. The following data are available for 2013.
$\begin{array}{lcccc} & \text { Service } & \text { Service } & \text { Producing } & \text { Producing } \\& \text { Dept. 1 } & \text { Dept. 2 } & \text { 1 } & \text { 2 } \\\hline \text { Department Costs } & \$ 20000 & \$ 12000 & \$ 80000 & \$ 90000 \\\text { Machine hours } & 12000 & 8000 & 12000 & 60000 \\\text { Square Feet Occupied } & 3000 & 3000 & 9000 & 6000\end{array}$

The costs of service departments 1 and 2 are allocated on the basis of machine hours and square feet occupied, respectively. Total overheads from producing departments are allocated to products on the basis of direct labour hours, which are 5000 in Producing Department 1 and 2000 hours in Producing Department 2. Service department 1 is allocated first.
-Assuming that Sharon Manufacturing Company allocates service department 1 costs first,the amount of service department 1 costs allocated to service department 2 under the direct method would be:

A) $ 0
B) $1600
C) $2000
D) $2400