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

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Accounting

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) $ 38,000 0 % 30 % 35 % 35 %
Service 2 (S2) 28,000 20 0 20 60
Production 1 (P1) 180,000
Production 2 (P2) 230,000

What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $180,000 to $200,000?

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