Villanueva Company has two producing and two service departments labeled P1, P2, S1 and S2, respectively. Direct costs for each department and the proportion of service costs used by the various departments are as follows: (P1, P300,000); (P2. P200,000); (S1, P100,000; S2- 25%, P1-50%, P2-25%); (S2. P40,000; S1-10%, P1-50%, P2- 40%). What is the total cost of P1 if the costs of service departments are allocated using the direct method? * P386,111 P370,000 O P388,889 O P377,778 P386,666
Villanueva Company has two producing and two service departments labeled P1, P2, S1 and S2, respectively. Direct costs for each department and the proportion of service costs used by the various departments are as follows: (P1, P300,000); (P2. P200,000); (S1, P100,000; S2- 25%, P1-50%, P2-25%); (S2. P40,000; S1-10%, P1-50%, P2- 40%). What is the total cost of P1 if the costs of service departments are allocated using the direct method? * P386,111 P370,000 O P388,889 O P377,778 P386,666
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Villanueva Company has two
producing and two service
departments labeled P1, P2, S1
and S2, respectively. Direct
costs for each department
and the proportion of service
costs used by the various
departments are as follows:
(P1, P300,000); (P2.
P200,000); (S1, P100,000; S2-
25%, P1-50%, P2-25%); (S2.
P40,000: S1-10%, P1-50%, P2-
40%). What is the total cost of
P1if the costs of service
departments are allocated
using the direct method?
P386,111
P370,000
O P388,889
O P377,778
O P386,666
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