Alpha Company has two service departments, A and B. The costs of these service departments are allocated to two production departments, C and D. The following table describes the usage of the allocation base of the service departments by the service and production departments:

Service Department A has costs of €100,000 and Service Department B has costs of €200,000.
Allocate these costs to production departments C and D using the direct, step-down (Service Department A first), and reciprocal method.

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Service Service Production Production Dept. A Dept. B Dept. C Dept. D Total Service Dept. A 500 100 800 600 2,000 Service Dept. B 1,000 2,000 3,000 4,000 10,000