1. Leader 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:

Allocation of support departments	S1	S2	P1	P2
S1	-	10%	40%	50%
S2	20%	-	50%	30%
Direct costs	4,500	8,000	10,000	15,000

Required:

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.

2. Describe the differences between support and producing departments. Give two examples of each.