23. What amount will be allocated by S1 to S2 under direct method? __________24. What amount will be allocated by S2 to P2 under direct method? __________25. How much is the total overhead costs in P3 after the allocation under direct method?
- The following information relates to Wal-Mart Corporation for the past accounting period
Cost Direct
Center Cost Proportion of Services used by:
S1 S2 S3 P1 P2 P3
S1 P120,000 .10 .30 .25 .20 .15
S2 80,000 .20 .40 .20 .20
S3 45,000 .60 .35 .05
P1 78,000
P2 99,000
P3 45,000
__________23. What amount will be allocated by S1 to S2 under direct method?
__________24. What amount will be allocated by S2 to P2 under direct method?
__________25. How much is the total overhead costs in P3 after the allocation under
direct method?
__________26. Under the step method which department will allocate its direct cost first?
__________27. Under the step method which department will allocate its direct cost last?
__________28. Using the algebraic method, how much is the total costs to be allocated by S1 to all departments?
__________29. Using algebraic method, how much is the cost to be allocated by S3 to S2?
__________30. What is the total cost to be allocated by the servicing departments to
producing departments?
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