Question: Brief Exercises 7-11 through 7-14 involve departmental cost allocation with two service departments and two production departments. Use the following information for these four exercises:

Brief Exercises 7-11 through 7-14 involve departmental cost allocation with two service departments and two production departments. Use the following information for these four exercises: Percentage Service Provided to Department Service 1 (S1) Service 2 (S2) Production 1 (P1) Production 2 (P2) Cost $ 30,000 20,000 100,000 150,000 S1 S2 0% 30% 20 0 P1 P2 35% 35% 20 60 7-11 What is the amount of service department cost allocated to P1 and P2 using the direct method? 7-12 What is the total cost in P1 and in P2 after allocation using the direct method? 7-13 What is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first? 7-14 How does your answer to 7-11 change if the cost in P1 is changed from $100,000 to $120,000?

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