5 6 7 Qi. Advance Manufacturing Company has two Service Departments-Custodial Services and Maintenance and three Production Departments-Cutting. Milling, and Assembly. Delta allocates the cost of Custodial Services on the basis of square metres and Maintenance on the basis of labour hours, Budgeted operating data for the year just completed follow 000 10 Service Departments Production Departments 11 Custodial Services Maintenance Cutting Milling Assembly 12 Budgeted costs before allocation $17.000.00 $7,000.00 75.000.0$ 48,000.0088,000.00 13 Square metres 1000 10000 5000 22000 13000 14 Labour-hours 4000 8000 8000 15 16 Required: 17 18 a) Prepare a schedule to allocate Service Department costs to the Production Departments by the direct method. 19 rounding all dollar amounts to the nearest whole dollar. (6 marks) 20 21 Service Departments Production Departments Show anylall workings in here: 22 Services Custodial Maintenance Cutting Milling Assembly 23 Budgeted costs before allocation 24 25 Allocation of Custodial Services: 26 Cutting: 27 Milling: 28 Assembly: 29 30 Allocation of Maintenance: 31 Cutting: 32 Milling: 33 Assembly: 34 Costs after allocation 35 36 Instructions SECTION 2 SECTION 3 SECTION 4 SECTION 5 SECTION 6 FORMULA SHEET Nel 36 37 b) Prepare a schedule to allocate Service Department costs to the Production Departments by the step-down method. 38 allocating Custodial Services first, and rounding all amounts to the nearest whole dollar. (9 marks) 39 40 Service Departments Production Departments 41 Services Custodial Maintenance Cutting Milling Assembly 42 Budgeted costs before allocation 43 44 Allocation of Custodial Services: 45 Maintenance: 46 Cutting: 47 Milling: 48 Assembly: 49 50 Allocation of Maintenance: 51 Cutting: 52 Milling: 53 Assembly: 54 Costs after allocation 55