• Allocate costs in a service industry setting for LMN Corporation using the following data:

  Cost Component	Allocation Basis	Service A ($)	Service B ($)
  Administrative Costs	Number of Employees	$20,000	$30,000
  Facility Costs	Square Footage	$15,000	$25,000

  Requirements:

  • Allocate costs to each service based on the allocation basis.
  • Present the cost allocation analysis in a detailed table format.
  • Discuss the challenges of cost allocation in service industries.