Required information SB (Static) The following information is... [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Department Service 1 (51) Service 2 (52) Production 1 (P1) Production 2 (P2) P1 P2 Cost $ 30,000 Total Cost Allocated Percentage Service Provided to 100,000 150,000 51 0% 20,000 20 52 30% 35% 0 20 P1 P2 35% 60 Brief Exercise 7-14 (Static) If the cost in P1 is changed from... [LO 7-3] What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $100,000 to $120,000?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information
SB (Static) The following information is...
[The following information applies to the questions displayed below.]
The following information is departmental cost allocation with two service departments and two production departments.
Percentage Service
Provided to
Department
Service 1 (S1)
Service 2 (52)
Production 1 (P1)
Production 2 (P2)
P1
P2
Cost
$ 30,000
20,000
100,000
150,000
Total Cost
Allocated
S1
0%
20
P2
35%
20 60
Brief Exercise 7-14 (Static) If the cost in P1 is changed from... [LO 7-3]
What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from
$100,000 to $120,000?
52 P1
30% 35%
0
Transcribed Image Text:Required information SB (Static) The following information is... [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Service 1 (S1) Service 2 (52) Production 1 (P1) Production 2 (P2) P1 P2 Cost $ 30,000 20,000 100,000 150,000 Total Cost Allocated S1 0% 20 P2 35% 20 60 Brief Exercise 7-14 (Static) If the cost in P1 is changed from... [LO 7-3] What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $100,000 to $120,000? 52 P1 30% 35% 0
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