Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct
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Question:
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:DepartmentDirect costsS1S2P1P2S1$139,2000.700.100.20S2$192,0000.200.300.50P1$161,000P2$235,000
Under the step method of cost allocation, the amount of costs allocated from S2 to P2 would be:
Multiple Choice
- $96,000.
- $108,500.
- $99,250.
- $180,900.
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