7-35 Departmental Cost Allocation Marshfield Manufacturing has two production department assembly and finishing. These are supported by two service departments-sourcing (purchasing and handling of raw materials and human resources) and operations (work scheduling, supervision, and inspection). Marshfield has the following labor-hours devoted by each of the service departe ments to the other departments Total Labor-Hours Used by Departments Sourcing Operations Assembly Finishing 25,000 45,000 70,000 10,000 50,000 40,000 Sourcing Operations The costs incurred in the plant are as follows: Departments Sourcing Operations Assembly Finishing Total Departmental Costs $134,000 189,000 398,500 266,000 987,500 Chapter 7 Cost Allocation Deparmente dal Products und dyPredat 2 Required Use 4 decimal places (eg, 33.3333%) in your calculations 1. What are the costs allocated to the two production departments using (a) the direct method. Col the step method (with the sourcing department going first), and (c) the reciprocal method? 2. What are the total costs in the production departments after allocation? Het entises is a large