How does your answer to 7-11 change if the cost in P1 is changed from $100,000 to

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How does your answer to 7-11 change if the cost in P1 is changed from $100,000 to $120,000?


Involve departmental cost allocation with two service departments and two production departments.

Percentage Service Provided to Department Cost S1 s2 P1 P2 Service 1 (S1) Service 2 (S2) Production 1 (P1) Production 2 (P2) $ 30,000 20,000 100,000 0% 30% 35% 35% 20 20 60 150,000

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Cost Management A Strategic Emphasis

ISBN: 9781259917028

8th Edition

Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith

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