Algebraic method The following chart indicates the percentage of support department services used by other departments. Service departments are designated S1, S2, and S3; operating departments are designated RP1 and RP2. Department S1 S2 Services Used 53 RP1 RP2 S1 52 53 N/A 10% 40% N/A 20 30 N/A 20% 30% 40% 30 20 10 40 10 Direct costs of the period were $170,000, $360,000, and $600,000 for S1, S2, and S3, respectively. Allocate the support department costs to the operating departments using the algebraic method. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. Note: Round your final answers below to the nearest 100; for example, round 8,668 to 8,700. RP1 $ RP2 363,000 x 164,000 x Total $ 527,000 x
Algebraic method The following chart indicates the percentage of support department services used by other departments. Service departments are designated S1, S2, and S3; operating departments are designated RP1 and RP2. Department S1 S2 Services Used 53 RP1 RP2 S1 52 53 N/A 10% 40% N/A 20 30 N/A 20% 30% 40% 30 20 10 40 10 Direct costs of the period were $170,000, $360,000, and $600,000 for S1, S2, and S3, respectively. Allocate the support department costs to the operating departments using the algebraic method. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. Note: Round your final answers below to the nearest 100; for example, round 8,668 to 8,700. RP1 $ RP2 363,000 x 164,000 x Total $ 527,000 x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Algebraic method
The following chart indicates the percentage of support department services used by other departments. Service departments are designated S1, S2, and S3; operating departments are designated RP1 and RP2.
Department S1 S2
Services Used
53
RP1 RP2
S1
52
53
N/A 10%
40% N/A
20 30 N/A
20% 30% 40%
30 20 10
40
10
Direct costs of the period were $170,000, $360,000, and $600,000 for S1, S2, and S3, respectively. Allocate the support department costs to the operating departments using the algebraic method.
Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar.
Note: Round your final answers below to the nearest 100; for example, round 8,668 to 8,700.
RP1 $
RP2
363,000 x
164,000 x
Total $
527,000 x
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