Direct, sequential, and reciprocal allocation

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 was as follows:

User Departments

Supplying Departments S1 S2 P1 P2

S1 0% 40% 30% 30%

S2 25% 0% 25% 50%

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 production departments using the sequential method beginning with the allocation of S1 department costs.

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

Please show all steps!