The following information is for questions 2-6 A company has two service departments (S1 and S2) and two manufacturing divisions (MI and M2) The following information is avrvices provided tos Proportion of services provided to Costs Service incurred department S2 M1 M2 20% 30% 50% 20% 30% S1 $290,000 S1 S2 500,000 50% 2. Using the direct method, what proportion of SI's costs will be allocated to M2? a. 20%. b. 37.5%. c. d. 50%. 62.500. Using the direct method, how much of the service department costs will be allocated to M a. $195,250. b. $205,750. c. $308,750 d. $326,450 4. Using the step method, how much of the service department costs will be allocated to N a. $243,000. b. $265,700. c. $295,400. The following information is for questions 2 -6 A company has two service departments (S1 and S2) and two manufacturing divisions (MI and M2). The following information is available. Proportion of services provided to incurred department S S2 MI M2 30% Costs Service $290,000 500,000 S1 $2 1 20% 30% 20% 50% 50% 2. Using the direct method, what proportion of SI's costs will be allocated to M2? a. 2090. b. 37.5%. c. 50% d. 62.5%. 3. Using the direct method, how much of the service department costs will be allocated to MI? a. $195,250 b. S205,750. c. $308,750. d. $326,450. Using the step method, how much of the service department costs will be allocated to M1? a. $243,000 b. $265,700. c. $295,400. d. $302,500 4. Using the reciprocal method, how should the total service department costs of Sl be expressed a. Si $290,000 +5x S2. 5. b. S1- $290,000 + .2 x S2. c. S1 $290,000 + 3x S2. d. S1 $500,000 +.5x S2