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Section A is a table depicting Service Departments' S1 and S2 allocations. Table B is to be used to derive the allocation percentages for the

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Section A is a table depicting Service Departments' S1 and S2 allocations. Table B is to be used to derive the allocation percentages for the direct method. Table C is for the results of the Direct method allocation. Table D is for the step method starting with S2. Section E and F are for the reciprocal method. Insert your new Department S1 and S2 costs after solving the reciprocal equations.

on A is a table depicting Service Departments' S1 and 52 allocations. Table B is to be used to derive the cation percentages for the direct method. Table C is for the results of the Direct method allocation. Table D. is the step method starting with S2, Section E and F are for the reciprocal method. Insert your new Department S1 and S2 costs after solving the reciprocal equations. Proportion of services provided to: Costs incurred S2 M1 44.00% Department si $2 22.00% 34.00% $900,000 $500,000 30.00% 55.00% 15.00% B. Direct Method Calcs Calculation of the ratios: S1 MI 44%. M2 34). 31 Grossed up Grossed up S2 SS Y list 30% 100% Total Direct Method Costs allocated to From: Costs incurred S2 Total Step Method Costs allocated to: s2 M1 s1 M2 From: Costs incurred Subtotal Total Reciprocal Method New S1 cost New S2 cost Costs allocated to: S2 M1 From: M2 Costs incurred Subtotal S2 Total

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