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1. Leader Company has two support departments (S1 and S2) and two producing departments (P1 and P2). Estimated direct costs and percentages of services used

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1. Leader Company has two support departments (S1 and S2) and two producing departments (P1 and P2). Estimated direct costs and percentages of services used by these departments are as follows: S1 S2 10% Allocation of support departments Si S2 Direct costs P1 40% 50% 10,000 P2 50% 30% 15,000 20% 4,500 8,000 Required: a. Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method. b. Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method. 2. Describe the differences between support and producing departments. Give two examples of each

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