Snowcap Electronics is a manufacturer of data storage devices. Snowcap consists of two service departments (maintenance and computing) and two production departments (assembly and testing).Maintenance costs are allocated on the basis of square footage occupied, and computing costs are allocated on the basis of the number of computer terminals. The following data relate to allocations of service department costs:

Required
Allocate the service department costs to production departments using the direct method. Round to two decimalplaces.

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Maintenance Computing Assembly Testing $700,000 900,000 Service department costs Square footage Terminals 100,000 20 50,000 60