Question
Algebraic method The following chart indicates the percentage of support department services used by other departments. Service departments are designated S1, S2, and S3; operating
Algebraic method The following chart indicates the percentage of support department services used by other departments. Service departments are designated S1, S2, and S3; operating departments are designated RP1 and RP2.
Services Used | |||||
---|---|---|---|---|---|
Department | S1 | S2 | S3 | RP1 | RP2 |
S1 | N/A | 10% | 20% | 30% | 40% |
S2 | 40% | N/A | 30 | 20 | 10 |
S3 | 20 | 30 | N/A | 40 | 10 |
Direct costs of the period were $340,000, $720,000, and $1,200,000 for S1, S2, and S3, respectively. Allocate the support department costs to the operating departments using the algebraic method. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. Note: Round your final answers below to the nearest 100; for example, round 8,668 to 8,700.
RP1 | |
RP2 | |
Total |
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