Long Island Manufacturing Company developed the following information for its service departments, S1 and S2, and its production departments, P1 and P2:
-Using the direct method of service department cost allocation,how much is to be allocated from S2 to P2 if calculations are rounded to the nearest dollar?
A)$5,720
B)$6,480
C)$8,640
D)$4,430

Question

Long Island Manufacturing Company developed the following information for its service departments, S1 and S2, and its production departments, P1 and P2: 
-Using the direct method of service department cost allocation,how much is to be allocated from S2 to P2 if calculations are rounded to the nearest dollar?
A)$5,720 
B)$6,480 
C)$8,640 
D)$4,430

Quizplus · Accepted Answer

C)$8,640 = $14,400 × 45/(30+45)

Long Island Manufacturing Company Developed the Following Information for Its