Cowboy Enterprises has three service departments (administration, maintenance, and computer support) and two production departments (creative and assembly). A summary of costs and other data for each department prior to allocation of service department costs for the year ended June 30, Year 1, follows:

The company allocates the costs of the administration, maintenance, and computer support departments on the basis of direct labor hours, square footage occupied, and number of computers, respectively. Round all final calculations to the nearest dollar.

a. Assuming that the company elects to distribute service department costs directly to production departments without inter-service department cost allocation, what amount of maintenance department costs would the company allocate to the creative department?

b. Assuming the same method of allocation as in part a., what amount of administration department costs would the company allocate to the assembly department?

c. Assuming that the company elects to distribute service department costs to other service departments (starting with the computer support department) as well as the production departments, what amounts of computer support department costs would the company allocate to the maintenance department? (Note: Once the firm has allocated a service department’s costs, no subsequent service department costs are allocated back to it.)

d. Assuming the same method of allocation as in part c., what amount of maintenance department costs would the company allocate to the computer support department?

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Administration Maintenance Computer Support Assembly $3,130,000 $ 950,000 $1,950,000 $2,050,000 Creative Direct Material Costs. Direct Labor Costs.. Overhead Costs... Direct Labor Hours. Number of Computers. Square Footage Occupied. $65,000 $91,000 $90,000 $70,000 $82,100 $62,000 $56,100 2,700 $1,650,000 $1,850,000 56,250 43,750 3,100 4, 200 20 12 280 200 1,750 2,000 4,800 88,000 72,000