Happy Burger Co. has a commissary that supplies food and other products to its restaurants. It has two service departments, computer services (S1) and administration and maintenance (S2), which...

PLS ANSWER AND SHOW SOLUTION

Extracted text: Happy Burger Co. has a commissary that supplies food and other products to its restaurants. It has two service departments, computer services (S1) and administration and maintenance (S2), which support two operating departments, food products (P1) and supplies (P2). As internal auditor, you are checking the procedures for cost allocation and find the following results: Costs allocated to Pl: P 30,000 from S1 ? from S2 Costs allocated to P2: P 15,000 from S2 ? from S1 Total costs for the two service departments - P 80,000 S2's services are provided as follows: 20% to S1 50% to P1 30% to P2 28. Using direct method of allocating service department costs, compute the total service department costs incurred by S2. а. Zero b. P 20,625 с. P 40,000 d. P 50,000