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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: Allocation of support departments SI S2 P1 P2 S1 10% 40% 50% S2 20% 50% 30% Direct costs 4,500 8,000 10,000 15,000 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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