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3 34 31 Logan Products has two production departments--assembly and finishing. These are supported by two service departments-sourcing (purchasing and handling of materials and human

3 34 31 Logan Products has two production departments--assembly and finishing. These are supported by two service departments-sourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection Logan has the following labor hours devoted by each of the service departments to the other departments ello P Sourcing Operations Sourcing Terations 20,000 4,000 50,000 00,000 The costs incurred in the plant are as follows Departments Sourcing Operations Assembly Finishing Total Departmental Costs $219,000 295,000 References Required: 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first, and id the reciprocal method 2. What are the total costs in the production departments after allocation (For all requirements, do not round intermediate calculations. Round your final answers to neerest whole dollar amount.) Direct Method Fishing Shop Method Assantly Finishing Recal Method Assembly Trating Service Department Cost Allocated Productio Cont

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