All-Town Corporation has two production departments, Pl and P2, and two support-service departments, S1 and $2. Direct

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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.

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Related Book For  book-img-for-question

Cost Management Strategies For Business Decisions

ISBN: 12

4th Edition

Authors: Ronald Hilton, Michael Maher, Frank Selto

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