Taylor Company uses two producing departments (A and B) and two service departments (S1 and S2). The costs incurred in S1 and S2 are allocated to Departments A and B and included in their factory overhead rates for costing products. S1 costs are allocated based on the number of employees, S2 costs are allocated based on direct labor-hours, and the production departmental overhead rates are also based on direct labor-hours. The following data are available for a recent period: What is the order of allocation under the step cost allocation method? Select one: A. Service department S1 is allocated first. Service department S2 is allocated second. B. Service department $2 is allocated first. Service department S1 is allocated second. C. Service department S1 and S2 are allocated equally, so order does not matter. D. None of the above