3) Support department cost allocations; single-department cost pools; d rect, step-down, and reciprocal methods. The Manes Company has two products. Product I is manufactured entirely in Department X. Product : s manufactured entirely in Department Y. To produce these two products, the Manes Company has two support departments: A (a materials. handling department) and B (a power-generating department). An analysis of the work done by Departments A and B in a typical period is as follows: The work done in Department A is measured by the direet labour-hour of materials-handling time. The work done in Deparment B is measured ty the kilowatt-hours of power. The hudgeted costs of the support departments for the eoming year are The budgeted cosss of the operating departments for the coning veal are 1. What are the allocitions of costs of support Departments A and B wo operating Departments X ind Y asing the direct method, two different se. quenes of the sep--boun method, and the reciprocal method of reallocation? 2. The power company has offered to supply all the power neceded by the Wanes Company and to provide all the services of the present Power Department. The cost of this senvice will be SAt per kilowatt-hourl of power. Should Nanes accept: Fisplain