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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
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 S1 Department S1 S2 P1 P2 Direct costs $180,000 $162.000 $ 197000 $140000 S2 0.70 P1 0.10 0.300.50 P2 0.20 0.20 Under the step-method of cost allocation, the amount of costs allocated from $2 to P2 would be: O $81000 D $84 250 D $180,000 D $93.500
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