Snowflake Company has two service departments (S1 and 52) and two producing departments (P1 and P2). Department 51 costs are allocated on the basis of number of employees, and Department S2 costs are allocated on the basis of space occupied expressed in square feet. Data on direct department costs, number of employees, and space occupied are as follows: 51 $2 P1 Direct dept. costs $15,000 $22,000 $55,000 Number of employees Space occupied P2 10 2,000 0 0 5 1,000 25 3,000 If Snowflake uses the direct method, what is the ratio representing the portion of Department S2 allocated to P2? P1 P2 $60,000 30 7,000

Snowflake Company has two service departments (S1 and 52) and two producing departments (P1 and P2). Department 51 costs are allocated on the basis of number of employees, and Department S2 costs are allocated on the basis of space occupied expressed in square feet. Data on direct department costs, number of employees, and space occupied are as follows: 51 $2 P1 Direct dept. costs $15,000 $22,000 $55,000 Number of employees Space occupied P2 10 2,000 0 0 5 1,000 25 3,000 If Snowflake uses the direct method, what is the ratio representing the portion of Department S2 allocated to P2? P1 P2 $60,000 30 7,000

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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