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5. Wabasha Co. has two service departments (A and B) and two producing departments (X and Y). Data provided are as follows: Service Depts.

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5. Wabasha Co. has two service departments (A and B) and two producing departments (X and Y). Data provided are as follows: Service Depts. Operating Depts. A B X Y Direct costs $150 $300 Services performed by Dept. A 40% 40% 20% 70% 10% Services performed by Dept. B. 20% Wabasha uses the reciprocal method to allocate service department costs. The service department cost allocated to Department Y is a. $60. b. $75. . $85. d. $135.

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