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: Direct Departmentcosts S1 Si S2 P1 P2 60,000 100,000 0.20 160,000 140,000 S2 P1 P2 0.700.10 0.20 0.300.50 Under the step-method of cost allocation, the amount of costs allocated from S2 to P2 would be: Select one: а. $53,250. b. $62,500. c. $50,000 d. $88,750.

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: Direct Departmentcosts S1 Si S2 P1 P2 60,000 100,000 0.20 160,000 140,000 S2 P1 P2 0.700.10 0.20 0.300.50 Under the step-method of cost allocation, the amount of costs allocated from S2 to P2 would be: Select one: а. $53,250. b. $62,500. c. $50,000 d. $88,750.

Name: Cordner Corporation has two productiondepartments, P1 and P2, and two
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Description: Cordner Corporation has two productiondepartments, P1 and P2, and two servicedepartments, S1 and S2. Direct costs for eachdepartment and the proportion of servicecosts used by the various departments for themonth of July are as follows:ProportionofS

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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