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.

Transcribed Image Text:

Maintenance Computing Assembly Testing Service department costs Square footage $600,000 $1,000,000 60,000 40,000 Terminals 20 30