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Lansing Company has two service departments (S1 and S2) and two production departments (P1 and P2). Costs from S1 are allocated based on number of

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Lansing Company has two service departments (S1 and S2) and two production departments (P1 and P2). Costs from S1 are allocated based on number of employees. Costs from S2 are allocated based on square footage of floor space. The following table provides information on the costs, number of employees and square footage of the four departments: si S2 P1 P2 Departmental $8,000 $14,000 $110,000 $235,000 cost Employees 20 30 50 40 Square 2,000 3,000 15,000 25,000 footage If Lansing uses the direct method to allocate service department cost, how much cost will be allocated from S2 to P2? (Round to the nearest dollar) A) $5,000 B) $8,750 C) $7,777 D) $8.333

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