Brandeis 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 direct-method of cost allocation,the amount of S1 costs allocated to the S2 would be:

Question

Brandeis 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 direct-method of cost allocation,the amount of S1 costs allocated to the S2 would be:

Quizplus · Accepted Answer

Under the direct-method of cost allocation, service department costs are only allocated to production departments and not to other service departments. Therefore, the amount of S1 costs allocated to S2 would be $0.

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