The  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  Company has two support departments: A (a materials-handling department) and B (a power-generating department). An analysis of the work done by departments A and B in a typical period follows.

Requirement 1. What are the allocations of costs of support departments A and B to operating departments X and Y using (a) the direct method, (b) the step-down method (allocate department A first), (c) the step-down method (allocate department B first), and (d) the reciprocal method. (a) the direct method Using the direct method, allocate the support-department costs. (Do not round interim calculations and round your answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs.) A B X Y Costs to be allocated Allocate A Allocate B Total (b) the step-down method (allocate department A first) Using the step-down method, allocate support-department costs. Allocate the costs for department A first. (Do not round interim calculations and round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs.) A B X Costs to be allocated Allocate A Allocate B Total 100 000