Cordner Corporation has two production Departments: P1 and P2, and two service departments: S1 and S2. The
Fantastic news! We've Found the answer you've been seeking!
Question:
Cordner Corporation has two production Departments: P1 and P2, and two service departments: S1 and S2. The ratio of direct costs for each department and service costs used by the various departments for the month of July is as follows:
| Rate of Services Used by: | |||||||||||
| Department | Direct costs | S1 | S2 | P1 | P2 | ||||||
| S1 | $ | 60.000 | 0.70 | 0.10 | 0.20 | ||||||
| S2 | $ | 100.000 | 0.20 | 0.30 | 0.50 | ||||||
| P1 | $ | 160.000 | |||||||||
| P2 | $ | 140.000 | |||||||||
In the direct cost allocation method, what would be the amount of costs S1 allocated to P1 ?
Expert Answer:
Related Book For 
Posted Date:
