The Merk Company has to products. Product 1 is manufactured entirely in department X. Product 2 is manufactured entirely in department Y. To produce these two products, the Mark Company has two support departments: A la materials-handling department and la power-generating departmant) An analysis of the work done by departments A and Bin a typical period follows (Click the can ta view analysis of the work done by diecarents A and B. The budgeted costs of the support departments for the coming year are as follows. Click the icon to view the budgeted costs of the support departments.) Racuined Click the icon to see the Worked Solution. . Requirement 1. What are the alocations of costs of support degartments A and B to operating departments X and Y using (a) the direct method, by the step down method (allocate department A first). (c) the step down method (allocate department B first), and (d) the reciprocal method. B () ). c( (a) the direct chod Using the direct method, allocate the support department costs. (Do not round interim calculations, and round your answers to the nearest whole coiler.Use parentheses or a minus sign when decreasing departments by allocating costs. A B X Y Coete to be allocated Allocat Budgeted costs of support departments Allocate B Analysis of the work done by departments a and B 1 1 Department A Department B (Materials Handling) Power Generation) Variable indirect labour and inclirer material costs 3 318 000 3 50,000 Supervision 95,400 100,000 Depreciation 31,830 200,000 445 200 $ 360,000 + Materials handling + Power cxists The budgeld cxists of the petaling departments for the coming yesatare $2,500,000 tor department X and $1,900,000 for department Y. Supervision costs are salary cxists. Depreciation in department is the straight-line depreciation of power generation equipment in its 19 year of an estimated 25 year useful life it is old, burwell maintained, equipment. A Used by X 2,000 Supplied by A Y Y 800 1,200 1,530 765 The work done in denarlient A is ricasured by the direct labour-hours of materials-handling time. The work done in department B is measured by the klowat hours of ONCE Clear all Check