A manufacturing company has two service departments, Custodial Services and Maintenance, and three production departments, Cutting, Milling, and Assembly. The company allocates the cost of Custodial Services on the basis of square footage and Maintenance on the basis of labor-hours. No distinction is made between variable and fixed costs. Budgeted operating data for the year just completed follow Custodial Services Maintenance Cutting Milling Assembly $10,000 $75,000 $135,000 Budgeted costs before allocation Square feet Labor hours $ 12,000 20,000 2,000 $ 120,000 10,000 4,000 44,000 8,000 26,000 8,000 a. Calculate the custodial services cost that would be allocated to Milling Department by the direct method. Allocated to Milling under the direct method=$ (All answers are whole numbers - unless specified otherwise. You should NOT include the $ sign or a comma. Eg. you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g. -1000 for a decrease or loss of one thousand) b. Calculate the total cost of Milling Department if the company uses the step-down method rather than the direct method. Assume that the company allocates Custodial Services cost first. Total cost of Milling under the step-down method=$ 15 of 24 Next >