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NHL Inc. budgets the following amounts for each of its two service departments, S1 and 52, which service each other as well as the company's
NHL Inc. budgets the following amounts for each of its two service departments, S1 and 52, which service each other as well as the company's two production departments, S1 and 52: S1 S1 S2 S2 0.20 P1 0.40 0.40 P2 0.40 0.20 0.40 The actual results for the time period were as follows: S S1 S2 S2 0.10 P1 0.60 0.40 P2 0.30 0.50 0.10 Actual Cost Data for each department were: S1: $100,000 S2: $240,000 Under the Direct Method, how much of department S2's costs should be allocated department P1? O A. Nil OB.$50,000 O C.$40,000 OD. $160,000
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