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19. Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each department and the proportion

19. Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows:

Proportion of Services Used by:
Department Direct costs S1 S2 P1 P2
S1 $ 108,000 0.70 0.10 0.20
S2 $ 136,000 0.20 0.30 0.50
P1 $ 171,000
P2 $ 189,000

Under the direct-method of cost allocation, the amount of S1 costs allocated to P1 would be:

$10,800.

$36,000.

$46,000.

$110,500.

20. The following information summarizes the standard cost for producing one metal tennis racket frame at Spaulding Industries. In addition, the variances for one month's production are given. Assume that all inventory accounts have zero balances at the beginning of the month.

Standard Cost Per Unit Standard Monthly Costs
Materials $ 4.50 $ 9,000
Direct Labor 3 hrs. @ $2.40 7.20 18,000
Factory Overhead:
Variable 1.50 3,750
Fixed 5.60 14,000
$ 18.80 $ 44,750

Variances:
Material price 333.00 unfavorable
Material quantity 990.00 unfavorable
Labor rate 660.00 favorable
Labor efficiency 2,400.00 unfavorable

What was the actual quantity of materials used during the month?

2,220.

2,074.

2,000.

1,780.

21. Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows:

Proportion of Services Used by:
Department Direct costs S1 S2 P1 P2
S1 $ 66,000 0.70 0.10 0.20
S2 $ 106,000 0.20 0.30 0.50
P1 $ 175,000
P2 $ 236,000

Under the step-method of cost allocation, the amount of costs allocated from S2 to P2 would be:

$95,125.

$53,000.

$65,500.

$56,250.

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