Required information SB The following information is ... [The following information applies to the questions displayed below.] P1 P2 The following information is departmental cost allocation with two service departments and two production department Percentage Service Provided to Department Service 1 (S1) Service 2 (S2) Production 1 (P1) Production 2 (P2) Cost $ 49,000 39,000 290,000 340,000 Total Cost Allocated S1 0% 25 S2 P1 30% 35% 0 45 Brief Exercise 7-14 [LO 7-3] What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $290,000 to $310,000? P2 35% 30

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information
SB The following information is.
[The following information applies to the questions displayed below.]
The following information is departmental cost allocation with two service departments and two production departments.
Percentage Service
Provided to
Department
Service 1 (S1)
Service 2 (S2)
Production 1 (P1)
Production 2 (P2)
P1
P2
Brief Exercise 7-14 [LO 7-3]
Cost
$ 49,000
S1
0%
39,000 25
290,000
340,000
Total Cost
Allocated
What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from
$290,000 to $310,000?
S2 P1 P2
30% 35% 35%
0 45
30
Transcribed Image Text:! Required information SB The following information is. [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Service 1 (S1) Service 2 (S2) Production 1 (P1) Production 2 (P2) P1 P2 Brief Exercise 7-14 [LO 7-3] Cost $ 49,000 S1 0% 39,000 25 290,000 340,000 Total Cost Allocated What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $290,000 to $310,000? S2 P1 P2 30% 35% 35% 0 45 30
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