9 1 Questions Service Department Costs Allocation (12 marta 2 MF Ltd. has 2 service departments (Accounting and Maintenance and 2 operating departments and wed) M's management has decided to allocate Accounting costs on the basis of the number of employees 5 and Maintenance costs on the basis of the service hours used. Below is data concerning Mes current operations 7 Accounting Maintenance Lawnmower Weedwacker Overhead costs $340.000 S510.000 $787,500 5612.500 Employees 10 40 50 10 Service hours 20 500 480 11 12 Required: 13 1. Allocate the service departments costs to the two operating departments using step-down method. 14 The department with higher overhead cost would be ranked first. Show your detailed work. (6 marks) 15 16 17 18 19 Allocate the service departments costs using direct method. (4 marks) Question 3 New