The Josephine Company has 4 departments in its factory consisting of two service departments; S1 and S2, and two production departments; P1 and P2. Each of the production departments produce a single product. The current costs of each department are:

S1	$14,000
S2	$34,000
P1	$20,000
P2	$33,000

The distribution and consumption of departments' services is given in the following table:

	Service provided to:
	S1	S2	P1	P2
Services provided by:
S1	-	20%	50%	30%
S2	10%	-	45%	45%

What is the total cost incurred by Department P1 after the allocation of the service department costs on the basis of the step-down method?

Select one:

a. $57,000

b. $54,825

c. $45,400

d. $55,600

e. $46,175