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Business, 23.12.2019 23:31 hazeleyes2006

Long island manufacturing company developed the following information for its service departments, s1 and s2, and its production departments, p1 and p2:

s1 s2 p1 p2

col1 overhead cost $8,000 $14.400 $16,000 $20,000
col2 service provided by s1 30% 30% 40%
col3 service provided by s2 25% 30% 45%

using the direct method of service department cost allocation, how much is to be allocated from s2 to p2 if calculations are rounded to the nearest dollar?

a. $5,720
b. $6,480
c. $8,640
d. $4,430

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Answers: 3

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