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TB MC Qu. 11-52 Cordner Corporation has two production Departments... Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and

TB MC Qu. 11-52 Cordner Corporation has two production Departments...

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:

Department Direct costs S1 S2 P1 P2
S1 $ 84,000 0.70 0.10 0.20
S2 $ 212,000 0.20 0.30 0.50
P1 $ 251,000
P2 $ 150,000

Under the direct-method of cost allocation, the amount of S1 costs allocated to P1 would be: need DIRECT METHOD only please; I've only been able to find examples for this using the step method.

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13 value 0.66 points TB MC Qu. 11-52 Cordner Corporation has two production Departments... 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 by: Department S1 S2 P1 P2 Direct costs $ 84,000 $212,000 $251,000 $150,000 S2 0.70 P1 0.10 0.30 P2 0.20 0.50 S1 0.20 Under the direct-method of cost allocation, the amount of S1 costs allocated to P1 would be O $38,000 O $28,000 O $8.400 O $86,500

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