Solved

Moccasin Corp  Total department costs for the support and producing departments are as follows: \text { Total department costs for the support and producing departments are as follows: }

Question 151

Essay

Moccasin Corp. has two support departments, A and B and two producing departments, P1 and P2. The distribution of services by the support departments is as follows:  Services Provided to  Services Frovided from ABP1P2A20%45%35%B20%30%50%\begin{array}{lllll}&&\text { Services Provided to }\\\text { Services Frovided from }&A&B&P1&P2\\A & - & 20 \% & 45 \% & 35 \% \\B & 20 \% & - & 30 \% & 50 \%\end{array}
 Total department costs for the support and producing departments are as follows: \text { Total department costs for the support and producing departments are as follows: }

A$90,000 B150,000P1850,000P2700,000\begin{array}{lr}A & \$ 90,000 \\\mathrm{~B} & 150,000 \\\mathrm{P} 1 & 850,000 \\\mathrm{P} 2 & 700,000\end{array}
Required:
Find the amount of total costs for P1 and P2 using the reciprocal method.

Correct Answer:

verifed

Verified

A = $90,000 + 0.20B
A = $90,00...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents