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Direct Method, Reciprocal Method, Overhead Rates Department's output by the various departments. For all requirements, round allocation ratios to four significant digits and round allocated
Direct Method, Reciprocal Method, Overhead Rates Department's output by the various departments. For all requirements, round allocation ratios to four significant digits and round allocated costs to the nearest dollar. Required: final answers to the nearest cent. departments. Round final answers to the nearest cent. Round your intermediate calculations to four decimal places. 3. Explain the difference between the methods, and indicate the arguments generally presented to support the reciprocal method over the direct allocation method. (CMA adapted) The reciprocal allocation method is preferred because it recoqnizes that all support departments serve one another. Feedback Theck My Work labor hours or machine hours. 2. The reciprocal method, as well as direct and sequential methods, allocates all support department costs to the producing departments. 3. Consider the various methods and why you might prefer one versus another
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