Interdepartment Services: Direct Method Tucson Manufacturing Company has five operating departments, two of which are...
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Accounting
Interdepartment Services: Direct Method
Tucson Manufacturing Company has five operating departments, two of which are producing departments
P
and P
and three of which are service departments
S
S
and S
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 S
S
S
P
P
S
S
S
The direct operating costs of the service departments are as follows:
S
$
S
S
Using the direct method, prepare a schedule allocating the service department costs to the producing departments.
Do not round while completing your calculations.
Service Departments Producing Departments S
S
S
P
P
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