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Wallgasse Company has two service departments (S1 and S2) and two producing departments (P1 and...

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Accounting

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Wallgasse Company has two service departments (S1 and S2) and two producing departments (P1 and P2). Estimated direct costs and percentages of services used by other departments are as follows: Service Dept. S1 s2 P1 P2 S1 20% 30% 50% S2 25% 40% 35% Direct costs $32,000 $60,000 $40,000 $60,000 Using the step down method and allocating S2 first what is the total cost of P2 $40,375 $84,000 O 110,375 $92,000

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