Lido Corp. has a commissary that supplies food and other products to its franchisees. It has two service departments, computer services (SI) and administration and maintenance (S2), which support two operating departments, food products (P1) and supplies (P2). As internal auditor, you are checking the procedures for cost allocation and find the following results: Cost allocated to P1 P30,000 from S1 ? from S2 Cost allocated to P2 P37,500 from S2 ? from S1 P150,000 Total costs for the two service departments S2's service is provided as follows: 20 percent to S1 50 percent to P1 30 percent to P2 The direct method of allocating is used.
Lido Corp. has a commissary that supplies food and other products to its franchisees. It has two service departments, computer services (SI) and administration and maintenance (S2), which support two operating departments, food products (P1) and supplies (P2). As internal auditor, you are checking the procedures for cost allocation and find the following results: Cost allocated to P1 P30,000 from S1 ? from S2 Cost allocated to P2 P37,500 from S2 ? from S1 P150,000 Total costs for the two service departments S2's service is provided as follows: 20 percent to S1 50 percent to P1 30 percent to P2 The direct method of allocating is used.
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 30E: A company uses charging rates to allocate service department costs to the using departments. The...
Related questions
Question
Determine the total service department costs incurred by S2
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning