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4) Support department cost allocations; single-department cost pools; di- rect, step-down, and reciprocal methods . The Manes Company has two products. Product I is manufactured

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4) Support department cost allocations; single-department cost pools; di- rect, step-down, and reciprocal methods . The Manes Company has two products. Product I is manufactured entirely in Department X. Product? manufactured entirely in Department Y. To produce these two products, the Manes Company has two support departments : A la materials-handling de partment) and B (a power-generating department). An analysis of the work done by Departments A and B in a typical pe riod is as follows: Used By: Supplied By: A B X Y 300 250 150 500 100 400 The work done in Department A is measured by the direct labour-hours materials-handling time. The work done in Department B is measured by the kilowatt-hours of power The budgeted costs of the support departments for the the coming year are Department Department B Variable indirect labour and indirect materials contes $ 70,000 $10,000 Supervision 10,000 10,000 Amortization 20,000 20,000 $100,000 $40,000 + Power costs + Materials-handling The budged oss of the operating departments for the coming year are $1,500 ke Department X and S0,000 for Department Y. Supervisory costs are salary costs. Amortization in B is the straight line mortization of power-generation equipment in is nineteenth year of an es tinated 15-year useful le, te sold but well-maintained equipment MELOUIRED 1. What are the allocatives of oras at support Departments A and B w opera sting Departments X and Y using the direct method, tur diferent se partners of the stop-lown method and the reciprocal method of ralcone 2. The power company has offered to supply all the power needed by the Mures Company and to provide all the semices of the present Power De- partment. The cost of this service wille SAW per kilowat-hour of power Sheed Mures accepe Explain

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