1.The Bingleton Company has four departments in its factory with two service departments, S1 and S2, and two production departments Assembly and Finishing. The current costs of each department are:

Service Departments

Production Departments

S1

$47,000

Assembly

$50,000

S2

$30,000

Finishing

$49,000

The distribution and consumption of services is given in the following table:

Services provided to: S1 Assembly Finishing Services provided by: S1 35% 45% 20% S2 15% 60% 25%