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XYZ Corporation has two service departments, A and B, and two production departments, X and Y. The following costs are incurred by the service departments:

XYZ Corporation has two service departments, A and B, and two production departments, X and Y. The following costs are incurred by the service departments:

  • Service Department A: $50,000
  • Service Department B: $70,000

Allocate the service department costs to the production departments using the direct method.

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