25 x263 d. A final cost center is any cost center whose costs are not allocated to other cost centers. Use the following information to answer questions 2 through 6: A company has two service departments (S1 and S2) and two manufacturing divisions (M1 and M2). The following information is available. Percent Allocable to Costs Service Incurred $290,000 500,000 Department S1 S1 S2 M1 M2 20% 30% 50% S2 50% 20% 30% 2. Using the direct method, what proportion of S1's costs will be allocated to M2? a. 20% b. 37.5% c. 50% d. 62.5% 3. Using the direct method, how much of the service department costs will be allocated to M1? a. $195,250 b. $205,750 $308,750 d. e. $326,450 4. Using the step method, how much of the service department costs will be allocated to M1? a. $243,000 b. $265,700 c./ $295,400 d. $302,500