Question
The following information is departmental cost allocation with two service departments and two production departments. Percentage service provided to Cost S1 S2 P1 P2 Service
The following information is departmental cost allocation with two service departments and two production departments.
Percentage service provided to
Cost S1 S2 P1 P2
Service 1 (S1) $ 32,000 0% 20% 20% 60%
Service 2 (S2) 22,000 20 0 20 60
Production 1 (P1) 120,000
Production 2 (P2) 170,000
What is the total cost in P1 and P2 after allocation using the direct method?
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Cornerstones of Financial and Managerial Accounting
Authors: Rich Jones, Mowen, Hansen, Heitger
1st Edition
9780538751292, 324787359, 538751290, 978-0324787351
