Allocating service department costs directly to operating departments. Tino's Terrific Tacos has a commissary with two operating departments: PI. food inventor)'

control, and P2. paper goods inventory control. It has two service departments: SI, computer services, and S2, administration, maintenance, and all other. Each department's direct costs are as follows:

PI, P2, and S2 use Si's services as follows:

Allocate service department costs using the step method. Start by allocating SI to S2, PI, and P2.

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P1 P2 $1 $90,000 60,000 30,000 S2 40,000