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:
Under the step-method of cost allocation,the amount of costs allocated from S2 to P2 would be:
A) $88,750.
B) $50,000.
C) $62,500.
D) $53,250.

Question

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: 
Under the step-method of cost allocation,the amount of costs allocated from S2 to P2 would be:
A) $88,750. 
B) $50,000. 
C) $62,500. 
D) $53,250.

Quizplus · Accepted Answer

The Answer of 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: 
Under the step-method of cost allocation,the amount of costs allocated from S2 to P2 would be:
A) $88,750. 
B) $50,000. 
C) $62,500. 
D) $53,250.

Cordner Corporation Has Two Production Departments: P1 and P2 and Two