Feng Company has two service departments (S1 and S2) and two production departments (P1 and P2). Last year, directly identified overhead costs were $195,000 for S1 and $412,500 for S2. Information on the consumption of their services follows:

	User Departments
Supplying Departments	S1	S2	P1	P2
S1	0%	25%	35%	40%
S2	40%	0%	48%	12%

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.

	Service departments		Production departments
Direct Method	S1	S2	P1	P2
Costs
Allocation of S1 costs
Allocation of S2 costs
Closing balance