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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

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 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 -- $49,000

S2 -- $93,500

S3 -- $18,000

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

Do not round while completing your calculations.

Could you please explain how to get the correct answers for this problem? Thanks!

Jun 22 2020 View more View Less

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