Service Department $1 Percent Allocable to ŠK1 20% MD direct method, what proportion of $1's costs will be allocated to M
Service Department $1 Percent Allocable to ŠK1 20% MD direct method, what proportion of $1's costs will be allocated to M
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Use the following information to answer questions 2 through 6:
M2). The following information is available.
A company has two service departments (S1 and 52) and two manufacturing divisions (M1 and
Percent Allocable to
$2
20%
Costs
Incurred Department $1
$200,000
500,000
d. 62.5%
$2
50%
2. Using the direct method, what proportion of S1's costs will be allocated to M2!
a 20%
b. 37.5%
C. $295,400
d. $302,500
3. Using the direct method, how much of the service department costs will be allocated to M1?
a. $195,250
b. $205,750
c. $308,750
d. $326,450
4. Using the step method, how much of the service department costs will be allocated to M1?
a. $243,000
b. $265.700
a. S1-$290,000+ 0.5 × $2
b. S1-$290,000+ 0.2 × S2
c.
S1-$290,000+ 0.3 × $2
715473_1&course_id=_31557
M1 M2
expressed?
Using the reciprocal method, how should the total service department costs of S1 be
E
d. S1 - $500,000+ 0.5 × $2
Matching.docx
6. Using the reciprocal method, how much of the service department costs will be allocated to
a $241.000
6. $286.000
c. $304.000
$403.000
The the following information to answer questions. 7 through 0
When finished, make sure to click Submit.
Optionally, click Save as Draft to save changes and continue working later, or click Cancel to quit without saving chang
O 81 4
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6fd9b6cb-6bb9-4a7a-9ac2-33da5ff25167%2F96fd2c21-2bfb-46e6-95d7-c13b538bd24e%2Fgwf3gvg.jpeg&w=3840&q=75)
Transcribed Image Text:Use the following information to answer questions 2 through 6:
M2). The following information is available.
A company has two service departments (S1 and 52) and two manufacturing divisions (M1 and
Percent Allocable to
$2
20%
Costs
Incurred Department $1
$200,000
500,000
d. 62.5%
$2
50%
2. Using the direct method, what proportion of S1's costs will be allocated to M2!
a 20%
b. 37.5%
C. $295,400
d. $302,500
3. Using the direct method, how much of the service department costs will be allocated to M1?
a. $195,250
b. $205,750
c. $308,750
d. $326,450
4. Using the step method, how much of the service department costs will be allocated to M1?
a. $243,000
b. $265.700
a. S1-$290,000+ 0.5 × $2
b. S1-$290,000+ 0.2 × S2
c.
S1-$290,000+ 0.3 × $2
715473_1&course_id=_31557
M1 M2
expressed?
Using the reciprocal method, how should the total service department costs of S1 be
E
d. S1 - $500,000+ 0.5 × $2
Matching.docx
6. Using the reciprocal method, how much of the service department costs will be allocated to
a $241.000
6. $286.000
c. $304.000
$403.000
The the following information to answer questions. 7 through 0
When finished, make sure to click Submit.
Optionally, click Save as Draft to save changes and continue working later, or click Cancel to quit without saving chang
O 81 4
0
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