Question
A firm has two service departments (A and B) and two production departments (X and Y). The firm allocates service department cost using the direct
A firm has two service departments (A and B) and two production departments (X and Y). The firm allocates service department cost using the direct method.
Service Department A's services are consumed as follows.
- 20% used by Service Department B.
- 20% used by Production Department X.
- 60% used by Production Department Y.
Service Department B's services are consumed as follows.
- 20% used by Service Department A.
- 60% used by Production Department X.
- 20% used by Production Department Y
For the period, Service Department A has $794,876 costs, Service Department B has $871,295 costs, and Production Department Y has $1,153,695 costs for the period.
What is Department Y's total cost after both service department costs have been allocated (round final answer to nearest cent if necessary)?
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