The following information is departmental cost allocation with two service departments and two production departments....
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Accounting
| The following information is departmental cost allocation with two service departments and two production departments. |
| Percentage Service Provided to | ||||||||||||||
| Department | Cost | S1 | S2 | P1 | P2 | |||||||||
| Service 1 (S1) | $ 38,000 | 0 | % | 30 | % | 35 | % | 35 | % | |||||
| Service 2 (S2) | 28,000 | 20 | 0 | 20 | 60 | |||||||||
| Production 1 (P1) | 180,000 | |||||||||||||
| Production 2 (P2) | 230,000 | |||||||||||||
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| What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $180,000 to $200,000? |
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