6. Steve's Weather Vane Inc. manufactures some of the least expensive weather vanes ever made. These paper vanes fall apart after one spring shower. However, they are cheap. Steve's newest employee, April, a recent graduate of Ellis junior high has heard her dad talk about step down allocations which presumably more accurately reflect the cost of doing business. Steve currently uses direct allocations to determine product costs. Unfortunately, she doesn't remember how this step down process works and has asked you to show her the results of a step down allocation using the following data. Start the step down allocation with Sanitary Engineering Producttion Departments Service Departments Sanitary Human Engineering Resources 36 500 2500 Package and Shipping 24 Paper Mache 52 1500 # of employees Square feet utilized Coating 17 1200 12 Totals 141 6700 1000 Total Costs $150,000 $2,500,000 $250,000 $300,000 $150,000 $3,200,000