Please, someone walk me through this :)

Davy Company has three products. Product 1 is manufactured entirely in Department P1. Product 2 is manufactured entirely in Department P2. Product 3 is manufactured entirely in Department P3. To produce these products, Davy has three support departments: S1 (materials handling), S2 (milling), and S3 (power). Davy is considering buying its power from an external supplier for $110.00 per kilowatt-hour (KWH). The budgeted variable costs and the allocation bases for each support department appear below. The budgeted fixed costs of S3 are $ 400,000.

Required: Prepare your answer in a single spreadsheet file. Use Excels formula functions to compute your answers. Show your work. Clearly label each answer. Submit the file to Canvas.

a. What are the costs allocated to P1, P2, and P3 using the reciprocal method?

b. Assuming that only the variable costs of S3 are avoidable, should Davy accept the suppliers offer? Explain.

Support Department S1 (materials handling) S2 (milling) 53 (power) Variable costs si 300 200 400 $120,000 S2 900 400 300 $400,000 S3 600 500 250 $480,000 P1 800 700 1400 P2 1200 600 1300 P3 Allocation Base 1500 5,300 1000 3,400 1600 5,250 $1,000,000