Question 4. The Longhorn Company has four departments in its factory with two service departments,...
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Question 4. The Longhorn Company has four departments in its factory with two service departments, S1 and S2, and two production departments, P1 and P2 each of which produces a single product. The current costs of each department are: The distribution and consumption of services is given in the following table: Required: a) Allocate service department costs to production departments using the direct method. b) Allocate service department costs to production departments using the step-down method. c) Allocate service department costs to production departments using the reciprocal method to the nearest dollar
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Question 4. The Longhorn Company has four departments in its factory with two service departments, S1 and S2, and two production departments, P1 and P2 each of which produces a single product. The current costs of each department are: The distribution and consumption of services is given in the following table: Required: a) Allocate service department costs to production departments using the direct method. b) Allocate service department costs to production departments using the step-down method. c) Allocate service department costs to production departments using the reciprocal method to the nearest dollar 