The following information is departmental cost allocation with two service departments and two production departmen Percentage Service Provided to Department Service 1 (S1) Cost $ 31,000 S1 S2 P1 P2 0% 20% 40% 40% Service 2 (S2) 21,000 25 0 30 45 Production 1 (P1) 110,000 Production 2 (P2) 160,000 What is the total cost in P1 and P2 after allocation using the direct method? Total Cost P1 P2

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 24E: Refer to the data in Exercise 7.22. The support departments are ranked in order of highest cost to...
icon
Related questions
Question

Hansaben 

The following information is departmental cost allocation with two service departments and two production departments.
Percentage Service
Provided to
Department
Service 1 (51)
Cost
$ 31,000
S1
52
P1
P2
0%
20%
40%
40%
Service 2 (52)
21,000
25
0
30
45
Production 1 (P1)
110,000
Production 2 (P2)
160,000
What is the total cost in P1 and P2 after allocation using the direct method?
Total Cost
P1
P2
Transcribed Image Text:The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Service 1 (51) Cost $ 31,000 S1 52 P1 P2 0% 20% 40% 40% Service 2 (52) 21,000 25 0 30 45 Production 1 (P1) 110,000 Production 2 (P2) 160,000 What is the total cost in P1 and P2 after allocation using the direct method? Total Cost P1 P2
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Cost allocation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning