Federated COmpany has two service departments (S1 and S2) and two producing de

Federated COmpany has two service departments (S1 and S2) and two producing departments (A and B). Department S1 serves Departments S2 A and B in the
following percentages respectively: 10% 35% and 55%. Department S2 serves Departments S1 A and B in the following percentages respectively: 0% 60% and
40%. Direct department costs for S1 S2 A and B are $30000 $16000 $210000 and $195000 respectively. If Federated uses the step method of allocating
service department costs beginning with Department S1 what is the total amount of cost that will be allocated from S2 to Department A? A. $6400
B. $7600
C. $11400
D. $0