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1. How much of the first service department's cost will be assigned to the first production department using the step method? 2. How much of

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1. How much of the first service department's cost will be assigned to the first production department using the step method?

2. How much of the first service department's cost will be assigned to the second production department using the step method?

3. Using the step method, how much is the total cost of the second production department after allocating all service departments' costs?

Alaska LTD has two production departments (P1 and P2) and two service/support department: (S1 and S2 ). Data regarding the original costs of all departments and the percentages of using supporting departments' services is presented in the following table

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