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

Allocate the service department costs to the operating departments, first using the direct method, then the step-down method (Cleaning first), then the reciprocal method.

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Department Cost Allocated based on Service hours Square footage Assembly Operating $700,000 n/a 500 5,000 Cleaning Service $307,164 Square footage 300 2,000 IT Service $275,660 Service hours 200 1,000 Finishing Operating $800,000 n/a 600 7,000