Question: Below is the data for a company with two service departments ( S1 & S2), and two production departments (P1 & P2). S1 S2 P1

Below is the data for a company with two service departments (S1 & S2), and two production departments (P1 & P2).

S1

S2

P1

P2

Budgeted OH costs

$150,000

200,000

310,000

365,000

Support work provided:

By S1

-

10%

45%

45%

By S2

15%

-

40%

45%

What is the total cost of P2 if the company uses step down method?

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