Long island manufacturing company developed the following information for its service departments, s1 and s2, and its production departments, p1 and p2:

s1 s2 p1 p2

col1 overhead cost $8,000 $14.400 $16,000 $20,000
col2 service provided by s1 30% 30% 40%
col3 service provided by s2 25% 30% 45%

using the direct method of service department cost allocation, how much is to be allocated from s2 to p2 if calculations are rounded to the nearest dollar?

a. $5,720
b. $6,480
c. $8,640
d. $4,430

Western electric has 32,000 shares of common stock outstanding at a price per share of $79 and a rate of return of 13.00 percent. the firm has 7,300 shares of 7.80 percent preferred stock outstanding at a price of $95.00 per share. the preferred stock has a par value of $100. the outstanding debt has a total face value of $404,000 and currently sells for 111 percent of face. the yield to maturity on the debt is 8.08 percent. what is the firm's weighted average cost of capital if the tax rate is 39 percent?