A firm has two service centres, S1 and S2, and two production centres, P1 and P2. The first stage allocation of overhead expenses and the percentage consumption table are shown below:

Overhead Expenses S1 S2 P1 P2 First stage allocation $8000 $12 000 $30 000 $50 000

Percentage Consumption Table S1 S2 P1 P2 From S1 to: - 40% 30% 30% From S2 to: 20% - 50% 30%

a)Using the direct method of allocation, the service centre costs which are allocated to P1 and P2 respectively are (to nearest $): A $8 400; $6 000 B $11 500; $8 500 C $11 652; $8 348 D $11 900; $8 100

b) Using the step method of allocation and starting with the service centre which provides the greatest percentage of its services to other service centres, the final overhead cost of P1 is (to nearest $): A $38 400 B $41 500 C $41 900 D $58 500

c) Using the reciprocal services method of allocation, the total cost of S1 after solving simultaneous equations and before final allocation would be (to nearest $):

A $6 087 B $9 630 C $11 304 D none of the above