Support Departments		Producing Departments
	S1	S2	P1	P2
Budgeted overhead	$600,000	$300,000	$750,000	$920,000
Machine hours	0.20	-	0.30	0.50
Number of employees	-	0.25	.40	0.35

Department S1's cost is allocated based on the number of employees, and Department S2's cost is allocated based on machine hours

a) Refer to Figure 1. If the sequential or step method is used and Department S1's cost is allocated first, the Department S1s cost assigned to Department S2 would be

b) Refer to Figure 1. What is the total overhead cost associated with P2 after allocating the costs of support departments using the direct method?