Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Brief Exercises 7-11 through 7-14 involve departmental cost allocation with two service departments
and two production departments. Use the following information for these four exercises:
Brief Exercises
Percentage Service Provided to
Department Cost S1 S2 P1 P2
Service 1 (S1) $ 30,000 0% 30% 35% 35%
Service 2 (S2) 20,000 20 0 20 60
Production 1 (P1) 100,000
Production 2 (P2) 150,000
7-11 What is the amount of service department cost allocated to P1 and P2 using the direct method?
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