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Basis of space occupied

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Ralph Co. has two support departments (S1 and S2) and two producing department (P1 and P2). Department S1 costs are allocated on the basis of number of deigns and Department S2 costs are allocated on the basis of space occupied (in square feet).

 

S1

S2

P1

P2

Direct Department Cost

$7,600

$11,000

$27,500

$30,000

Number Of Designs

10

5

20

25

Space Occupied (in square feet)

1,000

500

1,500

2,500

If Ralph uses the direct method, how much of the Department S2 costs were allocated to Department P1?

Reference no: EM13852415

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