Dolphin Company has two service departments, S1 and S2 and three production departments, P1, P2 and P3. The following data relate to Dolphin Company's allocation of service department costs:Number of EmployeesS1S2IP1P2P3O $13,333The allocation of costs from S2 to S1 would be:O $4,800CostO $080,00040,000100,000800,0001,200,000O $10,000S1 allocates its costs on the basis of number of employees. S2 allocates its costs on the basis of kilowatt hours. The order of allocation for Dolphin Company is S1 first and S2 second. DolphinCompany uses the direct method to allocate its service department costs.Problem 3-423366Kilowatt Hours6004005001,0002,500

The direct method of cost allocation is a technique used to allocate costs directly to respective…

Dolphin Company has two service departments, S1 and S2 and three production departments, P1, P2 and P3. The following data relate to Dolphin Company's allocation of service department costs: Cost Number of Employees S1 S2 P1 P2 P3 80,000 40,000 100,000 800,000 1,200,000 2 3 3 6 6 Kilowatt Hours 600 400 500 1,000 2,500 S1 allocates its costs on the basis of number of employees. S2 allocates its costs on the basis of kilowatt hours. The order of allocation for Dolphin Company is S1 first and S2 second. Dolphin Company uses the direct method to allocate its service department costs. Problem 3-4 The allocation of costs from S2 to S1 would be:

Dolphin Company has two service departments, S1 and S2 and three production departments, P1, P2 and P3. The following data relate to Dolphin Company's allocation of service department costs: Cost Number of Employees S1 S2 P1 P2 P3 80,000 40,000 100,000 800,000 1,200,000 2 3 3 6 6 Kilowatt Hours 600 400 500 1,000 2,500 S1 allocates its costs on the basis of number of employees. S2 allocates its costs on the basis of kilowatt hours. The order of allocation for Dolphin Company is S1 first and S2 second. Dolphin Company uses the direct method to allocate its service department costs. Problem 3-4 The allocation of costs from S2 to S1 would be:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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