Question

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

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) $ 44,000 0 % 20 % 40 % 40 %
Service 2 (S2) 34,000 20 0 20 60
Production 1 (P1) 240,000
Production 2 (P2) 290,000

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 $240,000 to $260,000?

p1

Total Cost Allocated
p2
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Allocation of service Cost to P1 and P2 ( Direct method)
P1 P2 Total
S1 $22,000.00 $22,000.00 $44,000.00
(44000*40%/80%) (44000*40%/80%)
S2 $8,500.00 $25,500.00 $34,000.00
(34000*20/80) (34000*60/80)
Total $30,500.00 $47,500.00 $78,000.00
Total cost Allocated to PI & P2
P1 P2 Total
Overhead $240,000.00 $290,000.00 $530,000.00
Service Cost $30,500.00 $47,500.00 $78,000.00
Total $270,500.00 $337,500.00 $608,000.00
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Carolina Corporation has two production Departments: P1 and P2 and two service departments: S1 and...
1. Carolina Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows:    Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 72,000 0.70 0.10 0.20 S2 $ 157,000 0.20 0.30 0.50 P1 $ 214,000 P2 $ 179,000 Under the direct-method of cost allocation, the amount...
Question 1 (1 point) Motorcade Company has three service departments (S1, S2, and S3) and two...
Question 1 (1 point) Motorcade Company has three service departments (S1, S2, and S3) and two production departments (P1 and P2). The following data relate to Motorcade's allocation of service department costs: Budgeted Costs Nbr of Employees S1 $3,360,000 75 S2 2,120,000 50 S3 1,000,000 25 P1 150 P2 225 Service department costs are allocated by the direct method. The number of employees is used as the allocation base for all service department costs Calculate the total service department cost...
52.Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2....
52.Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows:    Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 148,000 0.70 0.10 0.20 S2 $ 179,000 0.20 0.30 0.50 P1 $ 209,000 P2 $ 148,000 Under the direct-method of cost allocation, the amount of...
Ant Corp. has two service departments and two operating departments. The company allocates service departmental costs...
Ant Corp. has two service departments and two operating departments. The company allocates service departmental costs to operating departments using the step-down method. Operating data for these departments for last year are as follows: Service Departments Operating Departments Personnel Maintenance Cutting Finishing Departmental costs $144,000 $84,000 $12,000 $47,000 Number of employees 35 30 60 90 Machine-hours 0 0 210 150 Personnel costs are allocated first on the basis of number of employees and Maintenance costs are allocated second on the...
Evergreen Company has two support departments (S1 and S2) and two producing departments (P1 and P2)....
Evergreen Company has two support departments (S1 and S2) and two producing departments (P1 and P2). Department S1 costs are allocated on the basis of number of employees, and Department S2 costs are allocated on the basis of space occupied expressed in square feet. Data on direct department costs, number of employees, and space occupied are as follows: S1 S2 P1 P2 Direct dept. costs $7,500 $11,000 $27,500 $30,000 Number of employees       10          5         20      ...
Wolfpack Company has two service departments and two production departments. Budgeted costs and budgeted activity in...
Wolfpack Company has two service departments and two production departments. Budgeted costs and budgeted activity in the various departments for the year are shown here: Custodial Cafeteria Cutting Assembly Departmental Costs 12,600 7,000 30,000 50,000 Square Feet Occupied 1,000 2,000 8,000 10,000 Number of Employees 20 30 150 200 Custodial service department costs are allocated on the basis of square feet of space occu- pied. The costs of the cafeteria are allocated on the basis of the number of employees....
Anderson Enterprises has three service departments, Administration, Maintenance and security and two production departments, Machining and...
Anderson Enterprises has three service departments, Administration, Maintenance and security and two production departments, Machining and Assembly. Total Manufacturing overhead was either directly traced or allocated to all of the departments resulting gin a total of $300,000 of overhead in the Maintenance Department, $240,000 in the administration department, $135,000 in the security department, $1,000,000 in the machining department and $300,000 in the assembly department. The company allocates service department cost using the step method. The maintenance department overhead is allocated...
Schneider, Inc. had the following information relating to 2011.             Budgeted FOH                 &nbs
Schneider, Inc. had the following information relating to 2011.             Budgeted FOH                                      P74, 800             Actual FOH                                          P78, 300             Applied FOH                                        P76, 500             Estimated labor hours                            P44, 000 Required:  if Schneider decides to use the actual results from 2011 to determine the 2012 overhead rate, what will the 2012 overhead rate be? PROBLEM 4 Thermal Corporation has two producing department and two service departments labelled P1, P2, S1, S2 respectively. Direct costs for each department and the proportion of service costs used by various departments are as...
A firm has two service departments (A and B) and two production departments (X and Y)....
A firm has two service departments (A and B) and two production departments (X and Y). The firm allocates service department cost using the direct method. Service Department A's services are consumed as follows. 20% used by Service Department B. 20% used by Production Department X. 60% used by Production Department Y. Service Department A has $649,160 costs for the period and Production Department Y has $841,334 costs for the period. What is Department Y's total cost after Department A's...
A firm has two service departments (A and B) and two production departments (X and Y)....
A firm has two service departments (A and B) and two production departments (X and Y). The firm allocates service department cost using the direct method. Service Department A's services are consumed as follows. 20% used by Service Department B. 20% used by Production Department X. 60% used by Production Department Y. Service Department A has $625,907 costs for the period and Production Department Y has $1,115,246 costs for the period. What is Department Y's total cost after service department...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT