Arctic Tundra Company Has Two Support Departments (S1 and S2)

Essay

Arctic Tundra Company has two support departments (S1 and S2) and two producing departments (P1 and P2).
Estimated direct costs and percentages of services used by these departments are as follows:

a. Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method.
b. Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method.