BWT 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:
Required:
a. Prepare a schedule allocating the service department costs to the producing departments using the direct allocation method.
b. Prepare a schedule allocating the service department costs to the producing departments using the step allocation method.

Question

BWT 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:
  Required:
a. Prepare a schedule allocating the service department costs to the producing departments using the direct allocation method.
b. Prepare a schedule allocating the service department costs to the producing departments using the step allocation method.

Quizplus · Accepted Answer

The Answer of BWT 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:
  Required:
a. Prepare a schedule allocating the service department costs to the producing departments using the direct allocation method.
b. Prepare a schedule allocating the service department costs to the producing departments using the step allocation method.

BWT Company Has Two Service Departments (S1 and S2) and Two