19. Allocate the service department costs to the operating departments using the direct method.

Smithson, Inc., has four departments with the following information before allocation:

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Department Cost Allocated based on Service hours Square footage Assembly Operating $70,000 n/a 600 800 Cleaning Service $24,000 Square footage 200 100 IT Service $30,000 Service hours 250 300 Finishing Operating $80,000 n/a 1200 400