Reference no: EM132574749

Question - RT Renovations is organized with two service departments (S1 and S2) and two production departments (P1 and P2). The company uses the step method to allocate service department costs, allocating from S1 to S2, P1, and P2 first. The cost accountant tells you that in November, $101,000 was allocated from S2 to P1 (including any cost allocated from S1 to S2). She also tells you that $51,000 was allocated from S1 to S2 in November.

P1 used 30 percent of S2 services and P2 used 45 percent of S2 services in November. Finally, S2 used 15 percent of S1 services in November.

Required -

a. What are the total costs incurred by S1 in November? (Do not round intermediate calculations.)

b. What are the total costs incurred by S2 (before any allocations) in November?