Alice Gibbons owns and operates Alice's Abstracting Service. Alice'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:

# of Transactions Square Footage Expected Costs

1. Abstract Services 50 1800
2. Closing Services 2200
3. Clerical 25 1600 $40,000
4. Custodial 5 $10,000

Required: Use the direct method to allocate the service department costs to the revenue generating departments. Provide the total costs for the revenue departments.

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