Interdepartment Services: Step Method Tucson Manufacturing Company has five operating departments, two of which are...
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Accounting
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 costs of the service departments are as follows:
S1
$63,000
S2
170,000
S3
16,000
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.)
Service Departments
Producing Departments
S1
S2
S3
P1
P2
Total Costs
0
0
0
?
?
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