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QUESTION 7 A company has two service departments (S1 and S2) and two manufacturing divisions (M1 and M2). The following information is available. Percent


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QUESTION 7 A company has two service departments (S1 and S2) and two manufacturing divisions (M1 and M2). The following information is available. Percent Allocable to Costs Incurred $290,000 500,000 Service Department S1 $1 S2 M2 20% 30% 50% S2 50% 20% 30% Show how much costs will be Allocated to M1 and M2 using : 1. Prepare the Distribution of Costs using the Direct Method 2. Prepare the Distribution of Costs using the Step Method 3. Prepare the Dsitribution of Costs using the Reciprocal Method SHOW ALL WORK - ANSWERS ONLY WILL GIVEN MINIMAL CREDIT.

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