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Feng Company has two service departments (S1 and S2) and two production departments (P1 and P2). Last year, directly identified overhead costs were $160,000 for
Feng Company has two service departments (S1 and S2) and two production departments (P1 and P2). Last year, directly identified overhead costs were $160,000 for S1 and $700,000 for S2. Information on the consumption of their services follows: (Click the icon to view the consumption information.) Requirements (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 two production departments using the sequential method beginning with the allocation of S1 department costs. (c) Determine the service department costs allocated to the two production departments using the reciprocal method. Requirement (a) Determine the service department costs allocated to the two production departments using the direct method. (Do not round ratio calculations. Use parentheses or a minus sign when decreasing departments by allocating costs. Complete all answer boxes.) Service departments Direct Method Costs Allocation of S1 costs Allocation of S2 costs Closing balance S1 S2 Production departments P1 P2 Data table Supplying Departments S1 S2 S1 Print 0% 40% User Departments S2 30% 0% Done P1 21% 24% P2 49% 36% X
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