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The answer is not 150,144 and 152,856 or the following: Question 1 Partially correct Mark 6.00 out of 10.00 Flag question Interdepartment Services: Step Method
The answer is not 150,144 and 152,856 or the following:
Question 1 Partially correct Mark 6.00 out of 10.00 Flag question Interdepartment Services: Step Method Tucson Manufacturing Company has five operating departments, two of which are producing departments (P1 and P2) and three of which are service departments (S1, S2, and 53). All costs of the service departments are allocated to the producing departments. The following table shows the distribution of services from the service departments. Services provided to Services provided from S1 P2 5% 25% 50% 20% 40 S3 20 60 S2 S3 P1 51 S2 10% 5 45 15 5 The direct operating costs of the service departments are as follows: 51 $21,000 S2 255,000 27,000 S3 Using the step method, prepare a schedule for Tucson Manufacturing Company allocating the service department costs to the producing departments. (Round calculations to the nearest dollar.) Service Departments Producing Departments S1 S2 S3 P1 P2 Total costs $ 0 0 $ 0 $ 156,750 x $ 146,250 XStep by Step Solution
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