reciprocal service department costs are\nnot allocated to producing departments under either the direct or…

reciprocal service department costs are\nnot allocated to producing departments under either the direct or the step - down methods.\nallocated to producing departments under the step - down method but not allocated to producing departments at all under the direct method.\nallocated to producing departments under both the direct and step - down methods.\nallocated to producing departments under the direct method but not allocated to producing departments at all under the step - down method.

reciprocal service department costs are\nnot allocated to producing departments under either the direct or the step - down methods.\nallocated to producing departments under the step - down method but not allocated to producing departments at all under the direct method.\nallocated to producing departments under both the direct and step - down methods.\nallocated to producing departments under the direct method but not allocated to producing departments at all under the step - down method.

Answer

Brief Explanations:

  • Direct method: Ignores reciprocal services between service departments. Allocates service department costs directly to producing departments.
  • Step - down method: Partially recognizes reciprocal services. Allocates service department costs to other service departments (in a sequence) and then to producing departments.

Answer:

allocated to producing departments under the step - down method but not allocated to producing departments at all under the direct method.