Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 146,000 0.70 0.10 0.20 S2 $ 187,000 0.20 0.30 0.50 P1 $ 178,000 P2 $ 179,000 Under the direct method of cost allocation, the amount of S1 costs allocated to P1 would be: Note: Do not round intermediate calculations. $14,600. $148,500. $58,667. $48,667.

Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 146,000 0.70 0.10 0.20 S2 $ 187,000 0.20 0.30 0.50 P1 $ 178,000 P2 $ 179,000 Under the direct method of cost allocation, the amount of S1 costs allocated to P1 would be: Note: Do not round intermediate calculations. $14,600. $148,500. $58,667. $48,667.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...

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		Proportion of Services Used by:
S1	$ 146,000		0.70	0.10	0.20
S2	$ 187,000	0.20		0.30	0.50
P1	$ 178,000
P2	$ 179,000

Similar questions

Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 72,000 0.70 0.10 0.20 S2 $ 157,000 0.20 0.30 0.50 P1 $ 214,000 P2 $ 179,000 Under the step method of allocation, the total amount of service costs allocated to producing departments would be: Multiple Choice $174,000. $178,600. $74,000. $229,000.
Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 148,000 0.70 0.10 0.20 S2 $ 179,000 0.20 0.30 0.50 P1 $ 209,000 P2 $ 148,000 Under the step method of cost allocation, the amount of costs allocated from S2 to P2 would be: Note: Do not round intermediate calculations.
Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 148,000 0.70 0.10 0.20 S2 $ 179,000 0.20 0.30 0.50 P1 $ 209,000 P2 $ 148,000 Under the step method of cost allocation, the amount of costs allocated from S2 to P2 would be: Note: Do not round intermediate calculations. Multiple Choice $176,625. $89,500. $92,750. $102,000.
Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 71,000 0.60 0.10 0.30 S2 $111,000 0.10 0.40 0.50 P1 $171,000 P2 $151,000 Under the direct method of cost allocation, the amount of S1 costs allocated to S2 would be: Multiple Choice $0. $4,440. $11,100. $42,600.
Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Direct Departmentcosts S1 S1 S2 P1 P2 60,000 100,000 0.20 160,000 140,000 S2 P1 P2 0.700.10 0.2O 0.300.50 Under the step-method of cost allocation, the amount of costs allocated from S2 to P2 would be: Select one: a. $53,250. b. $62,500. c. $50,000 d. $88,750. SSSS
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