The Bingleton Company has four departments in its factory with two service departments, S1 and S2, and two production departments Assembly and Finishing. The current costs of each department are:

Service Departments

Production Departments

S1

$330 000

Assembly

$513 000

S2

$247 000

Finishing

$438 000

The distribution and consumption of services is given in the following table:Services provided to:

S1

S2

Assembly

Finishing

Services provided by:

S1

-

35%

45%

20%

S2

15%

-

60%

25%

Using the direct method how much overhead costs will be allocated from S1 to

Finishing:

Select one:

A.

$101,538

B.

$148,500

C.

$66,000

D.

$228,462