Chan Company has two service departments (S1 and 52) and two production departments (P1 and P2). Last year, directly identified overhead costs were $273,750 for $1 and 1525,000 for $2. Information on the consumption of their services follows
Requirements (a) Determine the service department costs allocated to the two production departments using the direct method. (b) Determine the service department costs allocated to the two production departments using the sequential method beginning with the allocation of 51 department costs (c) Determine the service department costs allocated to the two production departments using the reciprocal method
