Problem 2. Greene Company produces small tractor parts on a job-order basis. Greene generally bids full cost plus 20 percent. The company operates two service departments and two producing departments. The budgeted costs and the normal activity levels for each department are as follows: $ Service Departments A B 120,000 $ 210,000 2.200 220 11 8 Overhead costs Square feet Number of employees Direct labor hrs Machine hrs $ Producing Departments D 115,000 5 62,000 6,500 1,800 45 35 10,200 6,600 6.000 10.800 The direct costs of Department A are allocated on the bases of number of employees: Department B is allocated on the basis of square feet. Departmental overhead rates are used to assign costs to products, Department Cuses machine hours, and Department D uses labor hours. The firm is preparing to bid on Job Q that requires three machine hours per unit produced in Department and no time in Department D. Prime costs per unit are $67. Required: Allocate the service costs to the producing departments using the direct method. What will be the bid for Job Qif the direct method is used? Allocate the service costs to the producing departments using the sequential method. What will be the bid for Job Q if the sequential method is used? Allocate the service costs to the producing departments using the reciprocal method What will be the bid for Job Q if the reciprocal method is used? . Previous