Accounting 356 Homework 6: Chapter 11 - Service Departments Jack Donaldson owns and operates Jack's Abstracting Service. Jack's two revenue generating operations (Abstracting Services and Closing Services) are supported by two service departments: Clerical and Custodial. Costs in the service departments are allocated in the following order using the designated allocation bases. Clerical: number of transactions processed. Custodial: square footage of space occupied. Average and expected activity levels for next month are as follows: Abstract services Closing services Clerical Custodial Numbers of Square Expected Transactions Footage Costs 50 1,800 25 2,200 1,600 S40,000 10,000 1) points) Use the direct method to allocate the service department costs to the revenue generating departments. Provide the total costs for the revenue departments. 21) (2 points) Use the step method to allocate the service department costs to the revenue generating departments, Assume Clerical costs are allocated before Custodial costs and round all calculations to the nearest whole dollar. Provide the total costs for the revenue departments 2b) (2 points) Use the step method to allocate the service department costs to the revenue generating departments but now assume Custodial costs are allocated before Clerical costs. Provide the total costs for the revenue departments 3) points) Use the reciprocal method to allocate the service department costs to the revenue generating departments. Provide the total costs for the revenue departments. (You may use Excel to solve the set of linear equations)