QUESTION 2 (16 Marks) The Manes Company has two products. Product 1 is manufactured entirely in Department X. Product 2 is manufactured entirely in Department Y. To produce these two products, the Manes Company has two service departments: A (a material handling department) and B (a power-generating department). An analysis of the work done by Departments A and B in a typical period is as follows: A Used by B X Y Supplied by A 100 250 150 B 500 - 100 400 The work done in Department A is measured by the direct labour hours of material- handling time. The work done in Department B is measured by the kilowatt hours of power. The budgeted costs of the service departments for the coming year are: Department A Department B Variable indirect costs $70,000 $10,000 Supervision $10,000 $10,000 Depreciation $20,000 $20,000 Total $100,000 $40,000> REQUIRED: 1. What are the allocations of costs of Service Departments A and B to Production Departments X and Y using the direct method? (Show all your work) (8 marks) 2. What are the allocations of costs of Service Departments A and B to Production Departments X and Y using the reciprocal method? (Show all your work). (8 marks) Acct 380 Quiz 2 Page 4