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Company A has two service departments, DA and DB, and two production departments, P1 and P2. Services provided to: Departments Costs DA $100,000 DB $50,000
Company A has two service departments, DA and DB, and two production departments, P1 and P2. Services provided to: Departments Costs DA $100,000 DB $50,000 P1 P2 15% 35 50 20% 55 25 Required: Allocate reciprocated Costs of DA and DB to departments. A. DA ($17,010; $39,691; $56,701) and DB ($13,402; 36,855.5; $16,752.5) B. DA ($15,773; $36,404; $32,577) DB ($15,152; 41,629; $18,943) C. DA ($16,500; $35,000; $50,000) DB ($10,000; $27,500; $12,500) D. None of them
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