Refer to the data given in the preceding problem. When Jacksonville Instrument Company established its service departments, the following long-run needs were anticipated.

Required:
Use the dual approach in conjunction with each of the following methods to allocate Jacksonville Instrument Company’s service department costs:
(1) Direct method,
(2) Step-downmethod.

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Long-Run Service Needs (in hours of service) Provider of Service Design User of Service HR Maintenance Design HR Maintenance 500 1,000 3,500 5,000 10,000 800 4,800 2,400 8,000 .. achining Finishing Tota 4,800 1,200 6,000