Interdepartment Services: Direct Method

Tucson 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.

Services provided toServices

provided

fromS$1$S$2$S$3$P$1$P$2$S$1--5\%25\%50\%20\%$S$210\%--54540$S$3155--2060$

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

S$1$$$63,000$S$2170,000$S$314,000$

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Using the direct method, prepare a schedule allocating the service department costs to the producing departments.

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Do not round while completing your calculations.

Service DepartmentsProducing DepartmentsS$1$S$2$S$3$P$1$P$2$Total costsAnswer $1$Answer $2$Answer $3$Answer $4$Answer $5$