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6 Not yet answered Marked out of 7 Flag question Cargo Manufacturing Company has two support departments (S1 and S2). These two departments serve two
6 Not yet answered Marked out of 7 Flag question Cargo Manufacturing Company has two support departments (S1 and S2). These two departments serve two production and operating departments (P1 and P2) Support Departments Production Departments S1 S2 P1 P2 Cost before allocation $90,000 $60,000 $360,000 $520,000 The percentage of support work From 51 From 52 Instructions: 10% 40% 50% 20% 50% 30% 1. Using the reciprocal method, a. What amount of 51 Department costs will be allocated to the P1? b. What amount of 51 Department costs will be allocated to the P2? 2. Using the step-down method, (assume the 52 department costs are allocated first), a. What is the cost of the 52 department that will be allocated to the P2. b. What is the total cost of the P2 after the allocation of all support departments? Show your calculations
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