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LeBron Corporation has two service departments, S1 and S2, and three production departments, P1, P2, and P3. Data for a recent month follow: Required: a.

LeBron Corporation has two service departments, S1 and S2, and three production departments, P1, P2, and P3. Data for a recent month follow:

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Required:

a. Compute the allocation of service department costs to producing departments using the direct method.

b. Compute the allocation of service department costs to producing departments using the step-down method.

c. Compute the allocation of service department costs to producing departments using the reciprocal method.

ServiceProvidedto:S1S2CostsS10.30$200,000S20.10$100,000P10.200.20$600,000P20.400.40$800,000P30.300.10$1,000,000

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