Ex2: Sugar 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:

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

Required:

1. Prepare a schedule allocating the support department costs to the producing departments using

   the direct allocation method.

2. Prepare a schedule allocating the support department costs to the producing departments using

   the sequential allocation method.