ming company has two service departments s1 and s2 and 270104

Ming Company has two service departments (S1 and S2) and two production departments (P1 and P2). Last year, directly identified overhead costs were $300,000 for S1 and $300,000 for S2. Information on the consumption of their services follows:

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Required

(a) Determine the service department costs allocated to the two production departments using the direct method.

(b) Determine the service department costs allocated to the two production departments using the sequential method beginning with the allocation of S1 department costs.156 Chapter 4 Accumulating and Assigning Costs to Products

(c) Determine the service department costs allocated to the two production departments using the reciprocal method.