Question
The following information is departmental cost allocation with two service departments and two production departments. Department Cost Percentage Service Provided to S1 S2 P1 P2
The following information is departmental cost allocation with two service departments and two production departments.
| Department | Cost | Percentage Service Provided to | |||
|---|---|---|---|---|---|
| S1 | S2 | P1 | P2 | ||
| Service 1 (S1) | $ 37,000 | 0% | 40% | 30% | 30% |
| Service 2 (S2) | 27,000 | 25 | 0 | 30 | 45 |
| Production 1 (P1) | 170,000 | ||||
| Production 2 (P2) | 220,000 |
What is the total cost in P1and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting
Authors: Carl L. Moore
5th Edition
0538019409, 978-0538019408
