The XYZ 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 XYZ 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. (Click the icon to view analysis of the work done by departments A and B.) The budgeted costs of the support departments for the coming year are as follows. * Analysis of the work done by departments A and B - X A Y Supplied by A B B 800 Used by 2,000 500 departments X and Y using (a) the direct method, (b) the ht B first), and (d) the reciprocal method. 1,200 1,500 3,000 ions and round your answers to the nearest whole dollar. Use The work done in department Ais measured by the direct labour-hours of materials-handling time. The work done in department B is measured by the kilowatt-hours of power. Print Done Allocate B Total - X i Budgeted costs of support departments Choose from any list or enter any numi A Required 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 Y Costs to be allocated Allocate A Allocate B Total Choose from any list or enter any number in the input fields and then continue to the next question. The XYZ 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 XYZ 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. E: (Click the icon to view analysis of the work done by departments A and B.) A Budgeted costs of support departments Required Department A (Materials Handling) Department B (Power Generation) Variable indirect labour and indirect material costs 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 first), and (d) the reciprocal method (use the linear equation method)? 2. An outside company has offered to supply all the power needed by the XYZ Company and to provide all the services of the present power department. The cost of this service will be $85 per kilowatt-hour of power. Should XYZ accept? Explain $ 318,000 $ 30,600 Supervision Depreciation 95,400 31.800 51,000 100,000 $ 445,200 $ 181,600 Print Done + Materials-handling costs + Power costs The budgeted costs of the operating departments for the coming year are $2,500,000 for department X and $1,900,000 for department Y. Supervision costs are salary costs. Depreciation in department B is the straight-line depreciation of power-generation equipment in its 19th year of an estimated 25-year useful life; it is old, but well maintained, equipment. next question Print Done