Wilhelm Manufacturing Company has five operating departments, two of which are producing departments (P1 and P2) and three of which are service departments (S1, S2, and S3). All costs of the service departments are allocated to the producing departments. The following table shows the distribution of services from the service departments.

Required
Using the direct method, prepare a schedule allocating the service department costs to the producing departments.

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Services provided from $1.. S2. S3.. Services Provided to $1 $2 $3 P1 P2 5% 25% 51 50% 20% 45 240 10% 15 5 - - 20 60 The direct operating costs of the service departments are as follows: S1. S2. S3. $ 98,000 187,000 36.000