A company has two service departments (S1 and S2) and two production departments (P1 and P2). Departmental data for August 2018 were as follows: Cost incurred: Service provided to: S1 S2 P1 P2 S1 P54,000 S2 P36,000 20% 10% 50% 40% What are the total allocated service department costs to P2 if the company uses the reciprocal method of allocating its service department costs? --- 30% 50%
A company has two service departments (S1 and S2) and two production departments (P1 and P2). Departmental data for August 2018 were as follows: Cost incurred: Service provided to: S1 S2 P1 P2 S1 P54,000 S2 P36,000 20% 10% 50% 40% What are the total allocated service department costs to P2 if the company uses the reciprocal method of allocating its service department costs? --- 30% 50%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What are the total allocated service department costs to P2 if the company uses the reciprocal method of allocating its service department costs?
Choices:
• P45,000
• P43,898
• P46,102
• P39,600
Transcribed Image Text:A company has two service departments (S1 and S2) and two production departments (P1 and P2). Departmental
data for August 2018 were as follows:
Cost incurred:
Service provided to:
S1
S2
P1
P2
S1
P54,000
S2
P36,000
20%
10%
50%
30%
40%
50%
What are the total allocated service department costs to P2 if the company uses the reciprocal method of allocating
its service department costs?
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