Maurice Tutor

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Category > Accounting Posted 29 Jul 2017 My Price 9.00

Tarheels Company

31.    Allocating service department costs directly to operating  departments.  Tarheels  Com- pany has two operating departments: P1 and P2. It has two service departments: S1 and S2. Each department’s direct costs are as follows:

 

P1    ......................................................................................................................................................................

$180,000

P2    ......................................................................................................................................................................

120,000

S1    ......................................................................................................................................................................

60,000

S2    ......................................................................................................................................................................

80,000

 

P1, P2, and S2 use S1’s services as   follows:

 

P1 ......................................................................................................................................................................        20 Percent

P2 ......................................................................................................................................................................        20 Percent

S2 ......................................................................................................................................................................        60 Percent

 

 

P1 and P2 use S2’s services as   follows:

 

P1 ......................................................................................................................................................................        40 Percent

P2 ......................................................................................................................................................................        60 Percent

 

 

Allocate service department costs using the step method. Start by allocating S1 to S2, P1, and P2.

Answers

Maurice Tutor
(5)
Status NEW Posted 29 Jul 2017 11:07 PM My Price 9.00

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