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Problem 11-56 (Algo) Solve for Unknowns: Direct Method (LO 11-2) Frank's Foods has a warehouse that supplies products to its store locations. The warehouse has
Problem 11-56 (Algo) Solve for Unknowns: Direct Method (LO 11-2) Frank's Foods has a warehouse that supplies products to its store locations. The warehouse has two service departments, Information Services (S1) and Operation Support (S2), and two operating departments, Order Processing (P1) and Delivery (P2). As an internal auditor, you are checking the company's procedures for cost allocation. You find the following cost allocation results for September. Costs allocated to P1 $53,000 from si ? from S2 ? from si $27,600 from S2 Costs allocated to P2 Total costs for the two service departments are $126,600. Operation Support's services are provided as follows: . 50 percent to Order Processing. 30 percent to Delivery. . The direct method of allocating costs is used. Required: a. What are the total service department costs (S1 + S2) allocated to P2? b. Complete the table under Tab B. c. What proportion of Si's costs were allocated to P1 and P2? Required A Required B Required C What are the total service department costs (S1 + S2) allocated to P2? (Do not round intermediate calculations.) Total allocated to P2 Required A Required B Required C Complete the following: (Do not round intermediate calculations.) To From Delivery Order Processing 53,000 Information Services Operation Support 27,600 Required A Required B Required C What proportion of Si's costs were allocated to P1 and P2? P1 P2 Allocation of S1's costs % %
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