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2. Joncs Company has two support departments: Payroll department (SI) and Maintenance department (S2), and three production departments: Molding (P1). Finishing (P1), Packaging (P3). Support

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2. Joncs Company has two support departments: Payroll department (SI) and Maintenance department (S2), and three production departments: Molding (P1). Finishing (P1), Packaging (P3). Support department costs are to be allocated to the production depan ments. Payroll department costs are allocated based on the mamber of employees in the de partment and maintenance department costs are allocated based on the trumber of squirt feet which the department occupies within the factory. Information about the departments is presented below: Department Costs Number of Employees Number of Square Feet Occupied Payroll (S1) $200,000 2 2.000 Maintenance (S2) $300,000 8 64.000 Molding (P1) S150.000 75 100,000 45 50,000 S400,000 Finishing (P2) 30 48.000 $250.000 Packaging (P3) A) What is the total cost (production department cost plus allocated costs from service depart- ments) of the Finishing department (P2) using the Direct method to allocate costs. B) What is the total cost (production department cost plus allocated costs from service depan- ments) of the Finishing department (P2) using the Step-Down (Sequential) method to allo- cate costs To court

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