) The following information is departmental cost allocation with two service departments and two production departments.

1.) The following information is departmental cost allocation with two service departments and two production departments.

                                                 Percentage Service Provided to

  Department           Cost          S1          S2          P1          P2  

Service 1 (S1)         $ 40,000   0%          25%       30%       45%  

Service 2 (S2)            31,000   20             0           20          60  

Production 1 (P1)     210,000               

Production 2 (P2)     260,000   

What is the amount of service department cost allocated to P1 & P2 using the direct method if the cost in P1 is changed from $210,000 to $230,000.

                   Total Cost Allocated

P1

P2

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