Interdepartment Services: Step 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.

Services Provided to

Services provided

from

S1

S2

S3

P1

P2

S1

--

5%

25%

50%

20%

S2

10%

--

5

45

40

S3

15

5

--

20

60

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

S1

$49,000

S2

93,500

S3

18,000

$160,500

Refer to the data above. Using the step method, prepare a schedule for Tucson Manufacturing Company allocating the service department costs to the producing departments. (Round calculations to the nearest dollar. Do not round until your final answers.)

	Service Departments			Producing Departments
	S1	S2	S3	P1	P2
Total cost