Question
Interdepartment Services: Direct Method Tucson Manufacturing Company has five operating departments, two of which are producing departments (P1 and P2) and three of which are
Interdepartment Services: Direct Method Tucson Manufacturing Company has five operating departments, two of which are producing departments (P1 and P2) and three of which are service departments (S1, S2, and S3). All costs of the service departments are allocated to the producing departments. The following table shows the distribution of services from the service departments. ervices provided from Services Provided to S1 S2 S3 P1 P2 S1 -- 5% 25% 50% 20% S2 10% -- 5 45 40 S3 15 5 -- 20 60 The direct operating costs of the service departments are as follows: S1 $ 49,000 S2 93,500 S3 18,000 Using the direct method, prepare a schedule allocating the service department costs to the producing departments. Do not round while completing your calculations. Service Departments Producing Departments S1 S2 S3 P1 P2 Total costs $Answer $Answer $Answer $Answer $Answer
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