Frank's Foods has a warehouse that supplies products to its store locations. The warehouse has...
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Accounting
Frank's Foods has a warehouse that supplies products to its store locations. The warehouse has two service departments Information Services (S1) and Operation Support (S2), and two operating departments, Order Processing (P1) and Delivery (P2). As an internal auditor, you are checking the company's procedures for cost allocation. You find the following cost allocation results for September $43,000 from S1 ? from S2 from S1 $32,100 from S2 Costs allocated to P1 Costs allocated to P2 Total costs for the two service departments are $128,600 Operation Support's services are provided as follows .50 percent to Order Processing 30 percent to Delivery The direct method of allocating costs is used Required a. What are the total service department costs (S1 +S2) allocated to P2? (Do not round intermediate calculations.) Total allocated to P2 b. Complete the following: (Do not round intermediate calculations.) 0 Order Processin From Delivery Information services 43,000 Operation support 32,100 c. What proportion of S1's costs were allocated to P1 and P2? P1 P2 Allocation of S1's costs %
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