Harrison Company has two service departments, two production departments, and two products.

Information about the departments is as follows:

	Service 1	Service 2	Production 1	Production 2	Total
Direct labor hours	1,000	3,000	2,000	2,000	8,000
Headcount	5	6	6	8	25
Direct costs	$30,000	$40,000	$30,000	$200,000	$300,000
Indirect costs (labor hours)					$60,000
Indirect costs (headcount)					$20,000

Service departments provide service to other departments as follows:

TO.......................................................................

From	Service 1	Service 2	Production 1	Production 2
Service Dept. 1	-	25%	15%	60%
Service Dept. 2	20%	-	20%	60%

Harrison uses the step method of cost allocation. If Service Dept. 1 goes first, the percentage of Service Dept 1 cost allocated to Production Dept 1 in the second phase is ______.

Multiple choice question.

15%

10%

25%

20%