Week $7$

Review questions $-$ allocating service department costs

The Medalina Company has $4$ departments in its factory consisting of two service departments; $S1$ and $S2,$ and two production departments; $P1$ and $P2.$ Each of the production departments produce a single product. The current costs of each department are:

$S1$ $$84,000$

$S2$ $$63,000$

$P1$ $$90,000$

$P2,$$$120,000$

The distribution and consumption of departments' services is given in the following table:

Services provided by:

$\backslash$table$[[$S$1,-,40\%,25\%,35\%$