Dolphin Company has two service departments, S1 and S2, and three production departments, P1, P2 and P3. The following data relate to Dolphin Company's allocation of service department costs:

	Cost	Number of Employees	Kilowatt Hours
S1	80,000	2	600
S2	40,000	3	400
P1	100,000	3	500
P2	800,000	6	1,000
P3	1,200,000	6	2,500

S1 allocates its costs on the basis of number of employees. S2 allocates its costs on the basis of kilowatt hours. The order of allocation for Dolphin Company is S1 first and S2 second. Dolphin Company uses the direct method to allocate its service department costs.

Problem 3-1

The allocation of costs from S2 to P1 would be:

Group of answer choices

$4,000

$10,000

$4,348

$5,000