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ding De partment uses d uses di department hours to apply overhead to production, calculate the overhead rate for each production den (LO2) Manufacturing Company
ding De partment uses d uses di department hours to apply overhead to production, calculate the overhead rate for each production den (LO2) Manufacturing Company has five operating departments, two of whicha M19-19. Interdepartment Services: Direct Method Tucson departments (Pl and P2) and three of which are service departments (S1, S2,a ments (S1, S2, a nd S 3). All costs of the service departments are allocated to the producing departments. The following table shows he ws the distribution of services from the service departments Services Provided to Services provided from S1. S2 S3 S1 S2 S3 P1 P2 -5% 25% 50% 20% 1096 10% - 15 5 45 40 20 60 The direct operating costs of the service departments are as follows: S1. S2 S3.. $49,000 93,500 .18,000 Required Using the direct method, prepare a schedule allocating the service department costs to the producing departments
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