Determine the total overhead cost for Production 1 using the direct method to allocate service department costs.

Determine the total overhead cost for Production 1 using the reciprocal method to allocate service department costs.

Three Company uses a process organized into two service or support departments (Support 1 and Support 2) and two producing departments (Production 1 and Production 2). Budgeted data for the four departments for the month of January are as follows. Overhead cost for the Support 1 Department is allocated based on number of employees. Overhead cost for the Support 2 Department is allocated based on machine hours