Question 1 Explain what safety margin is and how safety margin is used in decision making?

Question 2 The Longhorn Company has four departments in its factory with two service departments, S1 and S2, and two production departments, P1 and P2 each of which produces a single product. The current costs of each department are:

Service Departments	Production Departments
S1 $84,000	P1 $90,000
S2 $63,000	P2 $120,000

The distribution and consumption of services is given in the following table:

Services provided to:
	S1	S2	P1	P2
Services provided by:
S1	-	40%	25%	35%
S2	10%	-	70%	20%

Required:

a) Allocate service department costs to production departments using the direct method.

b) Allocate service department costs to production departments using the step-down method.

c) Allocate service department costs to production departments using the reciprocal method to the nearest dollar.

Note:- send me the answer with clear without plagiarisms and ASAP Please