a. C division of CS, Inc. has 3 service departments (Cafeteria, Human Resource Management, and Information Technology Support) and two production departments (Department 1 and Department 2). The following information was gathered regarding costs and usage of service departments. Usage Rates Service Department Costs Cafeteria HRM IT Support Production Department 1 Production Department 2 Cafeteria $144,000 10% 10% 40% 40% HRM $ 90,000 5% 5% 35% 55% IT Support $240,000 15% 5% 30% 50% Create a computer spreadsheet to allocate the service department costs to the production departments utilizing the direct method. Service Department Costs to Allocate Costs Allocated to Costs Allocated to Production Department 1 Production Department 2 Cafeteria $144,000 $72,000 HRM $ 90,000 $55,000 IT Support $240,000 Total Costs Allocated $474,000 $197,000 b. S division of CS, Inc. produces product A216 and product B123 in a joint process. The company has elected to use the Net Realizable Value method to allocate the $150,000 joint costs to the two products. The following additional information has been gathered. Product Sales Value Additional Processing Costs A216 $212,000 $97,000 B123 $169,000 $100,000 Create a computer spreadsheet to allocate the Joint Product Costs to product A216 and B123 using the Net Realizable Value method. Product A216 Sales Value 212,000 Additional Processing Costs B123 100,000 Net Realizable Value 115,000 Net Realizable Value Percentage 62.5% Joint Costs 150,000 150,000 Amount Allocated 56,250