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The following chart indicates the percentage of support department services used by other departments Service departments are designated S1 S2 and S3 operating departments are designated

The following chart indicates the percentage of support department services used by other departments. Service departments are designated S1, S2, and S3; operating departments are designated RP1 and RP2.

 

 

SERVICES USED

 

 

Department

S1

S2

S3

RP1

RP2

S1

n/a

10%

20%

30%

40%

S2

40%

n/a

30

20

10

S3

20

30

n/a

40

10

Direct costs of the period were $170,000, $360,000, and $600,000 for S1, S2, and S3,respectively. Allocate the support department costs to the operating departments using the algebraic method.

Jun 24 2020 View more View Less

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