Federated company has two service departments s1 and s2 and

Reference no: EM13591948

Federated COmpany has two service departments (S1 and S2) and two producing departments (A and B). Department S1 serves Departments S2, A and B in the following percentages, respectively: 10%, 35% and 55%. Department S2 serves Departments S1, A and B in the following percentages, respectively: 0%, 60% and 40%. Direct department costs for S1, S2, A and B are $30,000, $16,000, $210,000 and $195,000, respectively. If Federated uses the step method of allocating service department costs beginning with Department S1, what is the total amount of cost that will be allocated from S2 to Department A?

Reference no: EM13591948

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