Cost Accounting Book: Cornerstone 3rd edition by Hansen, Don R

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arctic tundra 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 department are as follows:

Used by Department

Support Dept. S1 S2 P1 P2

S1 - 10% 40% 50%

S2 20% - 50% 30%

Direct costs $4,500 $8,000 $10,000 $15,000

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.

thank you in advance for your help