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Service departments and two production departments

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Reference no: EM132035976

The following information is departmental cost allocation with two service departments and two production departments.

                                                 Percentage Service Provided to

  Department           Cost          S1          S2          P1          P2  

Service 1 (S1)         $ 40,000   0%          25%       30%       45%  

Service 2 (S2)            31,000   20             0           20          60  

Production 1 (P1)     210,000               

Production 2 (P2)     260,000   

What is the amount of service department cost allocated to P1 & P2 using the direct method if the cost in P1 is changed from $210,000 to $230,000.

                   Total Cost Allocated

P1

P2

Reference no: EM132035976

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