Aj A company has two service departments S₁ and S₂, and two production units P₁ and P2. The direct costsand cost allocations of S₁ and S₂ are as follows. S₁ has direct costs of $2000 with allocations of 40% toS2, 40% to P₁, and 20% to P₂. S₂ has direct costs of $1400 with allocations of 20% to S₁, 30% to P₁,and 50% to P2.Find the service costs of P₁. Give the answer in dollars rounded to two decimal places. Moodle doesn'tunderstand the dollar sign ($), so just write the number.Answer:

COST ALLOCATIONWhen items of cost are identifiable directly with products or departments such costs…

A company has two service departments S₁ and S₂, and two production units P₁ and P2. The direct costs and cost allocations of S₁ and S₂ are as follows. S₁ has direct costs of $2000 with allocations of 40% to S2, 40% to P₁, and 20% to P₂. Są has direct costs of $1400 with allocations of 20% to S₁, 30% to P₁, and 50% to P2. Find the service costs of P₁. Give the answer in dollars rounded to two decimal places. Moodle doesn't understand the dollar sign ($), so just write the number. Answer: