Wallgasse Company has two service departments (S1 and S2) and two producing departments (P1 and...
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Accounting
Wallgasse Company has two service departments (S1 and S2) and two producing departments (P1 and P2). Estimated direct costs and percentages of services used by other departments are as follows: Service Dept. S1 s2 P1 P2 S1 20% 30% 50% S2 25% 40% 35% Direct costs $32,000 $60,000 $40,000 $60,000 Using the step down method and allocating S2 first what is the total cost of P2 $40,375 $84,000 O 110,375 $92,000
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