Using the sequential method , if the support department with the highest percentage of interdepartmental service is allocated first, the cost of the support departments allocated to Department P1 is :

a. 12,750

b. 24,000

c. 21,750

d. 20,295 

Golden Leaves Company has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing departments, P1 and P2. The Maintenance Department costs of $30,000 are allocated on the basis of standard service used. The Personnel Department costs of $4,500 are allocated on the basis of number of employees. The direct costs of Departments P1 and P2 are $9,000 and $15,000, respectively. Data on standard service hours and number of employees are as follows: P2 P1 300 MD PD Standard service hours used 100 50 150 Number of employees 10 20 90 90 50 250 250 Direct labor hours 50