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Question 4. The Longhorn Company has four departments in its factory with two service departments, S1 and S2, and two production departments, P1 and P2
Question 4. 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: The distribution and consumption of services is given in the following table: 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
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