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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
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: Allocation of support departments S1 S2 10% si S2 Direct costs 20% 4,500 P1 40% 50% 10.000 P2 50% 30% 15,000 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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