The Springfield Company has three service departments, S1, S2, and S3, and two production departments, P1...
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Homework Answers
a.
Number of employees in P1 = 196
Number of employees in P2 = 294
Total number of employees in P1 and P2 = Number of employees in P1 + Number of employees in P2
= 196 + 294
= 490
| Service department | Service department cost | Cost allocated to | ||
| P1 | P2 | |||
| S1 | 4,588,000 | 4,588,000 x 196/490 = $1,835,200 | 4,588,000 x 294/490 = $2,752,800 | |
| S2 |
|
2,834,000 x 196/490 = $1,133,600 | 2,834,000 x 294/490 = $1,700,400 | |
| S3 | 2,760,000 | 2,760,000 x 196/490 = $1,104,000 | 2,760,000 x 294/490 = $1,656,000 | |
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