Allocating Service Department Costs First to Production Departments, Then to Jobs: Refer to the facts in exercise 5-11. Assume PI and P2 each work on two jobs: Job 10 and Job 11. Costs are allocated to jobs based on labor-hours in Pl and based on machine-hours in P2. The labor- and machine-hours worked in each department are as follows:

Required: How much of the service department costs allocated to PI and P2 in the direct method would be allocated to Job 10? How much to Job 11?

Transcribed Image Text:

P1 Job 10: Labor-hours 80 Machine-hours 10 Job 11: Labor-hours 10 Machine-hours 10 208 28 P2 10 90