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Cordner Corporation Has Two Production Departments: P1 and P2 and Two

Question 70

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Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2.Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows:
Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2.Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows:   Under the direct-method of cost allocation,the amount of S1 costs allocated to the S2 would be: A)  $42,000. B)  $20,000. C)  $0. D)  $6,000.Under the direct-method of cost allocation,the amount of S1 costs allocated to the S2 would be:


A) $42,000.
B) $20,000.
C) $0.
D) $6,000.

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