Meyers Company has a commissary with two operating departments: P1, food inventory control, and P2, paper goods inventory control. It has two service departments: S1, computer services, and S2, administration, maintenance, and all other. Each department’s direct costs are as follows:

P1............................................................................................ $90,000

P2............................................................................................ 60,000

S1 ........................................................................................... 30,000

S2 ........................................................................................... 40,000

P1, P2, and S2 use S1’s services as follows:

P1............................................................................................10 Percent

P2............................................................................................10 Percent

S2 ...........................................................................................80 Percent

P1 and P2 use S2’s services as follows:

P1............................................................................................ 37.5 Percent

P2............................................................................................ 62.5 Percent

Allocate service department costs using the step method. Start by allocating S1 to S2, P1, and P2.