Required:
a. Using the direct allocation method, calculate the allocated cost per service unit provided by S1, S2,
and S3.
b. Using the direct allocation method, calculate the costs of S1, S2, and S3 that are allocated to O1 and
O2.
c. Using the step-down allocation method, calculate the allocated cost per service unit pro-vided by S1,
S2, and S3.
d. Using the step-down allocation method, calculate the costs of S1, S2, and S3 that are allocated to O1
and O2. The order of the departments in the step-down is S1 first, S2 second, and S3 last.
e. Using the step-down allocation method, calculate the allocated cost per service unit pro-vided by S1,
S2, and S3. The order of the departments in the step-down is S3 first, S2 sec-ond, and S1 last.
f. Using the step-down allocation method, calculate the costs of S1, S2, and S3 that are allocated to O1
and O2. The order of the departments in the step-down is S3 first, S2 second, and S1 last.
g. Discuss the advantages and disadvantages for Sydney Mira of using the direct alloca-tion method, the
step-down method (S1 first, S2 second, and S3 last), and the step-down method (S3 first, S2 second, and
S1 last).
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