Agema Ltd is a manufacturing firm with two production departments, P1 and P2, and three service departments, S1, S2 and S3. The costs incurred by the service departments for year ended 30 June 2011, as well as the allocation bases are indicated below: Total costs ($) S1 180,000 Floor area S2 300,000 S3 480,000 Allocation basis Machine hour Units consumed During the year, the services provided were as follows: From: S1 (square feet) S2 (machine hours) S3 (units) To: S1 3,000 192,000 S2 5,000 48,000 S3 5,000 4,500 P1 40,000 7,500 480,000 P2 50,000 15,000 240,000 Required: Allocate the three (3) service departments' costs to the two (2) production departments using the following (Round the answers to the nearest dollar): (a) Direct method, and (b) Step method