Alpine Company has two service departments (S1 and S2) and two producing departments (P1 and P2). Department S1 costs are allocated on the basis of number of employees, and Department S2 costs are allocated on the basis of space occupied expressed in square feet. Data on direct department costs, number of employees, and space occupied are as follows:
If Alpine uses the direct method, what is the ratio representing the portion of Department S2 allocated to P2?

Question

Alpine Company has two service departments (S1 and S2) and two producing departments (P1 and P2). Department S1 costs are allocated on the basis of number of employees, and Department S2 costs are allocated on the basis of space occupied expressed in square feet. Data on direct department costs, number of employees, and space occupied are as follows:
  If Alpine uses the direct method, what is the ratio representing the portion of Department S2 allocated to P2?

Quizplus · Accepted Answer

The Answer of Alpine Company has two service departments (S1 and S2) and two producing departments (P1 and P2). Department S1 costs are allocated on the basis of number of employees, and Department S2 costs are allocated on the basis of space occupied expressed in square feet. Data on direct department costs, number of employees, and space occupied are as follows:
  If Alpine uses the direct method, what is the ratio representing the portion of Department S2 allocated to P2?

Alpine Company Has Two Service Departments (S1 and S2) and Two