Interdepartment Services: Direct Method

Wilhelm Manufacturing Company has five operating departments, two of which are producing departments $($P$1$ and P$2)$ and three of which are service

departments $($S$1,$ S$2,$ and S$3).$ All costs of the service departments are allocated to the producing departments. The following table shows the distribution of

services from the service departments.

The direct operating costs of the service departments are as follows:

Module

Using the direct method, prepare a schedule allocati$$ s$$ vice department costs to the producing departments.

Do not round while completing your calculations.