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What total amount of service costs allocated to producing

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Reference no: EM132655862

Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows:

Proportion of Services Used by

Department

Direct costs

S1

S2

P1

P2

S1

$146,000

 

0.70

0.10

0.20

S2

$187,000

0.20

 

0.30

0.50

P1

$178,000

 

 

 

 

P2

$179,000

 

 

 

 

Problem 1: Under the step method of allocation, the total amount of service costs allocated to producing departments would be

Reference no: EM132655862

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