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With explanation please :) 6. A firm has two support departments, S1 and S2, and two producing departments, P1 and P2. The S1 department costs
With explanation please :)
6. A firm has two support departments, S1 and S2, and two producing departments, P1 and P2. The S1 department costs of $30,000 are allocated on the basis of standard service hours used. The $2 department costs of $45,000 are allocated on the basis of number of employees. The direct costs of P1 and P2 are $9,000 and $15,000, respectively. Using the sequential method, if the support department with the highest percentage of interdepartmental service is allocated first, what are the two ratios that should be used to rank the support departments? Determine the amount of the cost allocated from the support departments to P1. Using the sequential method, if the support departments are ranked in the order of highest cost to lowest cost, determine the amount of the cost allocated from the support departments to P1
With explanation please :)
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