All-Town Corporation has two production departments, Pl and P2, and two support-service departments, S1 and $2. Direct
Question:
All-Town Corporation has two production departments, Pl and P2, and two support-service departments, S1 and $2. Direct costs for each department and the percentage of service costs used by the various departments for the month of May are as follows:
Percentage of Services Used By Department Direct Costs SI $2 Pl P2 6S de nercocbe eocrae diner crpcamnana racecar $ 80,000 60% 20% 20%
SEA eer pasceen meek otc Cb ekepnnbeaeeeneeerre 100,000 20% 50 30 Balle abef eatiorc oc seroretaes ace tacererestorr t 160,000
|e/ poser an daaneereer debnereac ap cas rosaaer: 140,000 Required
a. Compute the allocation of support-service department costs to producing departments using the direct method.
Step by Step Answer:
Cost Management Strategies For Business Decisions
ISBN: 12
4th Edition
Authors: Ronald Hilton, Michael Maher, Frank Selto