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   __________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?

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 7P: Distribution of service department costs to production departments using the sequential distribution...
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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

 

__________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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