Solve for Unknowns: Pronto's Pizza has a commissary that supplies food and other products to its pizza
Question:
Solve for Unknowns: Pronto's Pizza has a commissary that supplies food and other products to its pizza restaurants. It has two service departments, computer services (SI) and administration and maintenance (S2), which support two operating departments, food products (PI) and supplies (P2). As an internal auditor, you are checking the company's procedures for cost allocation. You find the following cost allocation results for June:
The direct method of allocating costs is used.
Required:
a. What are the total service department costs (SI + S2) allocated to P2?
b. Complete the following
c. What were the proportions of Si's costs allocated to PI and P2?
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