Sequential allocation (Appendix) Cooper Company has two service departments and two production departments. Information on annual manufacturing support costs and cost drivers follows:

The company allocates service department costs using the sequential method. First, SI costs are allocated based on direct labor hours. Next, S2 costs are allocated based on square footage. The square footage for SI is assumed to be zero for this purpose. Determine the total support costs allocated to each of the two production departments.

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SERVICE DEPARTMENT PRODUCTION DEPARTMENT Item S1 S2 P1 P2 Support costs $65,000 $55,000 $160,000 $240,000 Direct labor hours 2,000 1,500 2,000 3,000 Number of square feet 800 1,200 2,400 2,600