The Manes 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 Manes Company has two service departments: A (a material handling department) and B (a power-generating department). An analysis of the work done by Departments A and B in a typical period is as follows:

			Used by
		A	B	X	Y
Supplied by
A		---	100	250	150
B		500	---	100	400

The work done in Department A is measured by the direct labour hours of material-handling time. The work done in Department B is measured by the kilowatt hours of power.

The budgeted costs of the service departments for the coming year are:

Department A Department B

Variable indirect costs $70,000 $10,000

Supervision $10,000 $10,000

Depreciation $20,000 $20,000

Total $100,000 $40,000

REQUIRED:

1. What are the allocations of costs of Service Departments A and B to Production Departments X and Y using the direct method? (Show all your work)
2. What are the allocations of costs of Service Departments A and B to Production Departments X and Y using the reciprocal method? (Show all your work).