In: Accounting
Campaign Printing has two service departments, S1 and S2, and two production departments, P1 and P2.
The data for May were as follows:
Services provided to: |
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Activity |
Pre-allocation Costs |
S1 |
S2 |
P1 |
P2 |
S1 |
$90,000 |
10% |
40% |
50% |
|
S2 |
$60,000 |
20% |
55% |
25% |
|
Pre-allocation Costs |
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P1 |
$360,000 |
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P2 |
$520,000 |
Required:
Allocate service departments costs (S1 & S2) to the production departments (P1 & P2) using reciprocal method