The following information is departmental cost allocation with two service departments and two production departments. Department Service 1 (S1) Service 2 (S2) Production 1 (P1) Production 2 (P2) Cost $ 47,000 37,000 270,000 320,000 Percentage Service Provided to S1 0% 20 S2 P1 P2 20% 40% 40% 0 20 60 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 $270,000 to $290,000?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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[The following information applies to the questions displayed below.]
The following information is departmental cost allocation with two service departments and two production
departments.
Department
Service 1 (S1)
Service 2 (S2)
Production 1 (P1)
Production 2 (P2)
Cost
$ 47,000
37,000
270,000
320,000
Percentage Service
Provided to
S1
0%
20
S2 P1
20% 40%
20
0
P2
40%
60
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
$270,000 to $290,000?
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Department Service 1 (S1) Service 2 (S2) Production 1 (P1) Production 2 (P2) Cost $ 47,000 37,000 270,000 320,000 Percentage Service Provided to S1 0% 20 S2 P1 20% 40% 20 0 P2 40% 60 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 $270,000 to $290,000?
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