Using Direct Method, how much service costs will be allocated to P1? 2. Using Direct Method, how much total service costs will be allocated to P2? 3. Using Step Method (allocate S1 first), how much total service costs will be allocated to P1? 4. Using Step Method (allocate S1 first), how much total service costs will be allocated to P2?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 7MC: What is the cost of direct labor f the conversion costs are $330.000 and manufacturing overhead is...
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1. Using Direct Method, how much service costs will be allocated to P1?
2. Using Direct Method, how much total service costs will be allocated to P2?
3. Using Step Method (allocate S1 first), how much total service costs will be allocated to P1?
4. Using Step Method (allocate S1 first), how much total service costs will be allocated to P2?

Overhead Costs
Services provided to:
S1
S2
P1
P2
$1
P50,000
10%
40%
50%
S2
P 40,000
20%
30%
50%
Transcribed Image Text:Overhead Costs Services provided to: S1 S2 P1 P2 $1 P50,000 10% 40% 50% S2 P 40,000 20% 30% 50%
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