Pomelo Company has two service departments (1 and 2) and two operating (producing) departments (A and B). Data provided are as follows:

	Service Departments		Operating Departments
	1	2	A	B
Direct Costs	P150	P300	P5, 000	P6, 000
Services performed by Dept. 1		40%	40%	20%
Services performed by Dept. 2	20%		70%	10%

1. Assuming the direct method is used to allocate service department costs, what is the service department cost allocated to Department B?

1. P50. 00
2. P87. 50
3. P60. 00
4. P150. 00

2. What is the total cost of Department A?

1. P5, 000. 00
2. P5, 362. 50
3. P5, 295. 83
4. P5, 270. 00

3. Assuming the step down method is used to allocate service department costs. What is the service department costs allocated to Department B?

1. P60. 00
2. P75. 00
3. P100. 00
4. P66. 00

4. What is the total cost of Department A?

1. P5, 375
2. P5, 075
3. P5, 350
4. P5, 270

5. Assuming the reciprocal method is used to allocate service department costs, what is the service department cost allocated to Department B (rounded)?

1. P60. 00
2. P84. 78
3. P75. 00
4. P135. 00

6. What is the total cost of Department A (rounded)?

1. P5, 365. 00
2. P5, 375. 00
3. P5, 087. 00
4. P5, 085. 00