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Ming Company has two service departments (S1 and S2) and two production departments (P1 and P2). Last year, directly identified overhead costs were $255,000 for

Ming Company has two service departments (S1 and S2) and two production departments (P1 and P2). Last year, directly identified overhead costs were $255,000 for S1 and $320,000 for S2.
Information on the consumption of their services follows:

SupplyingUser Departments


DepartmentsS1S2P1P2
S15001,2006,0001,300
S28002007,0009,000


(a) Determine the service department costs allocated to the two production departments using the direct method.
Note: Round each rate to two decimal places before calculating the allocated amounts. Round answers to the nearest dollar.


Rate

Total

(rounded to 2 decimals)Total P1Total P2(any diff due to rounding)
S1 allocation amount



S1 allocation amount



Total service department costs




(b) Determine the service department costs allocated to the two production departments using the sequential method beginning with the allocation of S1 department costs.
Note: Round each rate to two decimal places before calculating the allocated amounts. Round answers to the nearest dollar.


Total allocated service

department costs
P1
P2
Total (any diff due to rounding)


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

Note: Do not round your computations; however, round your final answers to the nearest dollar.


Total allocated service

department costs
P1
P2


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