restaurants. It has two service departments, computer services (S1) and administration and maintenance (S2), which support two operating departments, food products (PI) and supplies (P2). As internal nuditor, you are chccking the procedures for cost Happy Burger Co, has a commissa allocation and find the following results: Costs allocated to PI: P 30,000 from SI ? from S2 Costs allocated to P2: A P15,000 from S2 ? from S1 Total costs for the two service departments P 80,000 $2's services are provided as follows: 20% to S1 50% to P1 30% to P2 TEE 10 28. Using direct method of allocating scrvice, department costs, compute the total service department costs incurred by S2. a. Zero b. P 20,625 с. Р40,000 d. P 50,000

Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter9: Auditing The Revenue Cycle
Section: Chapter Questions
Problem 24MCQ
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answer item #28 only, tysm!

Happy Burger Co. has a commissary that supplies food and other products to its
restaurants. It has two service departments, computer services (S1) and administration
and supplies (P2). As internal auditor, you arc checking the procedures for cost
and maintenance (S2), which support two operating departments, food products (PI)
Cost Accounting
256
and supplies (P2). As internal auditor, you are checking the procedures for )
allocation and find the following results:
Costs allocated to PT;
P 30,000 from SI
? from S2
Costs allocated to P2:
P 15,000 from S2
? from S1
Total costs for the two service departments P 80,000
S2's services are provided as follows:
20% to S1
50% to P1
30% to P2
28. Using direct method of allocating scrvice department costs, compute the total
service department costs incurred by S2.d la bili 2a bob. 34 2
a. Zero
b. Р20,625
с. Р40,000
d. P 50,000
Transcribed Image Text:Happy Burger Co. has a commissary that supplies food and other products to its restaurants. It has two service departments, computer services (S1) and administration and supplies (P2). As internal auditor, you arc checking the procedures for cost and maintenance (S2), which support two operating departments, food products (PI) Cost Accounting 256 and supplies (P2). As internal auditor, you are checking the procedures for ) allocation and find the following results: Costs allocated to PT; P 30,000 from SI ? from S2 Costs allocated to P2: P 15,000 from S2 ? from S1 Total costs for the two service departments P 80,000 S2's services are provided as follows: 20% to S1 50% to P1 30% to P2 28. Using direct method of allocating scrvice department costs, compute the total service department costs incurred by S2.d la bili 2a bob. 34 2 a. Zero b. Р20,625 с. Р40,000 d. P 50,000
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