Hello,

Are you able to assist with the below? And show all work? Thanks.

The Exam Company has two products. Product 1 is manufactured entirely in Division X.

Product 2 is manufactured entirely in Division Y. To produce these two products,

The company has two support divisions: A (a materials-handling division)

and B (a power-generating division).

The work done in Division A is measured by the direct labour-hours of

materials-handling time. The work done in Division B is measured by the

kilowatt-hours of power. The budgeted costs of the support divisions

for the coming year are:

An analysis of the work done by divisions A and B in a typical period follows:
	Used by
Supplied by	Support A Material Handling	Support B Power Generation	Division X	Division Y
					Total Costs	$800,000	$320,000
Support A (DL Hr)	-	200	300	500
Support B (Kilo Hr)	500	-	350	650

Take decimals to at least 3 decminal places

A)

Use the direct method to allocate the two support divisions costs.

Prepare a schedule showing the total costs allocated to Division X and Division Y.

B)

Use the step-down method to allocate the two support divisions costs. Prepare a

schedule showing the total costs allocated to Division X and Division Y

(Allocate Support A first).