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

	Service Departments		Production Departments
S1	$350 000	Assembly	$523 000
S2	$208 000	Packaging	$416 000

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

Services provided to:
	S1	S2	Assembly	Packaging
Services provided by:
S1	-	25%	45%	30%
S2	15%	-	50%	35%

Using the direct method how much overhead cost will be allocated from S2 to Packaging:

A.

$72,800

B.

$104,000

C.

$85,647

D.

$122,353