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Craylon Corp has two service departments, S1 and S2, and two production departments, P1 and P2. The data for April were as follows: Services provided
Craylon Corp has two service departments, S1 and S2, and two production departments, P1 and P2. The data for April were as follows: Services provided to: Activity Costs S1 S2 P1 P2 S1 (cost)$100,000 S1 none S2 20% p1 40% p2 50% S2 cost $80,000 s110% S2 none p1 55% p2 25% Fixed Costs P1 $400,000 P2 $500,000 Required: Allocate the service departments' (S1 & S2) costs to the two operating divisions using the reciprocal method.
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