Please do not give solution in image format thanku Jane Company has two service departments (S1 and S2) and two manufacturing divisions (M1 and M2). The following information isavailable.Service DepartmentS1S1S2A.B.$138,000$164,000C. $150,000Cost allocation BaseD. $132,500S2Machine hours (MH)Square footage (SF)Using the reciprocal method, the company has come up with the total cost (direct and allocated cost together) of each servicedepartment. The total costs are:S1: $300,000S2: $120,000Based on the reciprocal method, how much of the service department costs will be allocated to M1?Amount of service used byM1M25,000 SF1,000 MH3,000 MH6,000 MH8,000 SF7,000 SF

The department costs can be allocated to different divisions using various methods as direct method,…

Jane Company has two service departments (S1 and S2) and two manufacturing divisions (M1 and M2). The following information is available. Service Department S1 S1 S2 A. B. C. D. $138,000 $164,000 Cost allocation Base $150,000 S2 $132,500 Machine hours (MH) Square footage (SF) Amount of service used by S1: $300,000 S2: $120,000 Based on the reciprocal method, how much of the service department costs will be allocated to M1? M1 Using the reciprocal method, the company has come up with the total cost (direct and allocated cost together) of each service department. The total costs are: 5,000 SF M2 1,000 MH 3,000 MH 8,000 SF 6,000 MH 7,000 SF

Jane Company has two service departments (S1 and S2) and two manufacturing divisions (M1 and M2). The following information is available. Service Department S1 S1 S2 A. B. C. D. $138,000 $164,000 Cost allocation Base $150,000 S2 $132,500 Machine hours (MH) Square footage (SF) Amount of service used by S1: $300,000 S2: $120,000 Based on the reciprocal method, how much of the service department costs will be allocated to M1? M1 Using the reciprocal method, the company has come up with the total cost (direct and allocated cost together) of each service department. The total costs are: 5,000 SF M2 1,000 MH 3,000 MH 8,000 SF 6,000 MH 7,000 SF

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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