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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:

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:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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. S₂ has direct costs of $1400 with allocations of 20% to S₁, 30% to P₁, and 50% to P2. Find the service costs of P₁. Give the answer in dollars rounded to two decimal places. Moodle doesn't understand the dollar sign ($), so just write the number. Answer:
Transcribed Image Text: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. S₂ has direct costs of $1400 with allocations of 20% to S₁, 30% to P₁, and 50% to P2. Find the service costs of P₁. Give the answer in dollars rounded to two decimal places. Moodle doesn't understand the dollar sign ($), so just write the number. Answer:
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