What is the total amount of cost that will be allocated


Federated COmpany has two service departments (S1 and S2) and two producing departments (A and B). Department S1 serves Departments S2, A and B in the following percentages, respectively: 10%, 35% and 55%. Department S2 serves Departments S1, A and B in the following percentages, respectively: 0%, 60% and 40%. Direct department costs for S1, S2, A and B are $30,000, $16,000, $210,000 and $195,000, respectively. If Federated uses the step method of allocating service department costs beginning with Department S1, what is the total amount of cost that will be allocated from S2 to Department A?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What is the total amount of cost that will be allocated
Reference No:- TGS0699447

Expected delivery within 24 Hours