6 7 1 Q1. Advance Manufacturing Company has two Service Departments Custodial Services and Maintenance and they Production Departments Cutting. Milling, and Assembly. Delta allocate the cost of Custodial Services on the basis of square metres and Maintenance on the basis of labour hous, Budgeted operating data for the year just completed follow Service Departments Budgeted costs before allocation Square metres Labour-hours Production Departments Custodial Services Maintenance Cutting Milling Assembly $17,000.00 $7,000.00 $75,000 00$ 18,000.00 588,000.00 1000 10000 5000 22000 13000 4000 8000 8000 Required: a) Prepare a schedule to allocate Service Department costs to the Production Departments by the direct method, rounding all dollar amounts to the nearest whole dollar. (6 marks) Show anylall workin Service Departments Production Departments Custodial Maintenance Cutting Milling Assembly Services Budgeted costs before allocation New. Allocation of Custodial Services: Cutting Milling Instructions SECTION 2 SECTION 3 FORMULA SHEET SECTION 6 SECTION 5 SECTION 4 11 Cutting Milling 3 Assembly Costs after allocation 5 5 -b) Prepare a schedule to allocate Service Department costs to the Production Departments by the step down mother allocating Custodial Services first and rounding all amounts to the nearest whole dollar (9 marks) Service Departments Production Departments Services Custodial Maintenance Cutting Milling Assembly Budgeted costs before allocation Allocation of Custodial Services: Maintenance Cutting Milling Assembly New Allocation of Maintenance: Cutting Milling Assembly Costs after allocation SECTION 2 FORMULA SHEET SECTION 6 SECTION 4 SECTION 5 SECTION 3