Mega Manufacturing
the Mega Manufacturing Company Has Two Service Departments

Mega Manufacturing
The Mega Manufacturing Company has two service departments and two producing departments. The following data are available for 2013.
$$\begin{array} { l c c c c } &\text { Service } &\text { Service } & \text { Producing } & \text { Producing } \\&\text { Dept.1 }&\text { Dept.2 }&1&2\\\hline \text { Department Costs } & \$ 40000 & \$ 30000 & \$ 90000 & \$ 70000 \\\text { Machine hours } & 8000 & 4000 & 20000 & 16000 \\\text { Square Feet Occupied } & 3000 & 6000 & 9000 & 12000\end{array}$$
The costs of service departments 1 and 2 are allocated on the basis of machine hours and square feet occupied, respectively. Service department 1 is allocated first.
-Assuming that Mega Manufacturing Company allocates service department 1 costs first,the amount of service department 2 costs allocated to producing department 1 under the step-down method would be:

A) $13 214
B) $14 571
C) $12 857
D) $15 974