Deavayded departments (S1 and S2) and two producing departments (P1 and P2). Department data for April were as follows: Company has two service si P27,000 S2 Overhead costs P18,000 Services provided to: si S2 -0- 20% 10% -0- P1 50% 30% P2 40% 50% What is the total allocated service department cost to P2 if the company uses the reciprocal method of allocating its service department costs? P19,800 P21,949 P22,500 P23,051

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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· Deavayded
departments (S1 and S2) and two producing
departments (P1 and P2). Department data for
April were as follows:
Company
has
two
service
si
P27,000
S2
Overhead costs
P18,000
Services provided to:
si
-0-
20%
S2
10%
-0-
50%
40%
P1
30%
P2
50%
What is the total allocated service department
cost to P2 if the company uses the reciprocal
method of allocating its service department costs?
P19,800
P21,949
P22,500
P23,051
Transcribed Image Text:· Deavayded departments (S1 and S2) and two producing departments (P1 and P2). Department data for April were as follows: Company has two service si P27,000 S2 Overhead costs P18,000 Services provided to: si -0- 20% S2 10% -0- 50% 40% P1 30% P2 50% What is the total allocated service department cost to P2 if the company uses the reciprocal method of allocating its service department costs? P19,800 P21,949 P22,500 P23,051
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