How does your answer to 7-11 change if the cost in P1 is changed from $100,000 to $120,000? Brief Exercises 7-15 and 7-16 require the following information:
Involve departmental cost allocation with two service departments and two production departments. Use the following information for these four exercises:
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| Percentage Service Provided to: | |||
Department | Cost | S1 | S2 | P1 | P2 |
Service 1 (S1) | $ 30,000 | 0% | 30% | 35% | 35% |
Service 2 (S2) | 20,000 | 20 | 0 | 20 | 60 |
Production 1 (P1) | 100,000 |
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Production 2 (P2) | 150,000 |
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| Percentage Service Provided to: |
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Department | Cost | S1 | S2 | P1 | P2 |
Service 1 | $112,000 | 0% | 40% | 40% | 20% |
Service 2 | 44,000 | 20% | 0% | 40% | 40% |
Production 1 | 345,000 |
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Production 2 | 216,000 |
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| $717,000 |
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