Allocation Base Square feet of space Number of residents 1. 2. Kitchen Nursing Home 1,000 2,000 6 Direct method Step method Retirement Home 3,000 4 Required: 1. Management of NCI currently allocates the kitchen and cleaning department costs based on the number of residents in each home. Determine the amount of service department costs assigned to each of the homes using this allocation base. 2. DHFS auditors believe the step method of allocation should be used by first assigning cleaning costs based on square feet and then kitchen costs based on number of residents. Determine the amount of service department costs assigned to each of the homes using this allocation method. (Do not round percentages in your calculations.) > Answer is complete but not entirely correct. Nursing Home Retirement Home Total Return to question $ 130,000 $ 130,000 $ 260,000 $ 85,000 $ 45,000 $ 130,000

Required: 1. Management of NCl currently allocates the kitchen and cleaning department costs based on the number of residents in each home. Determine the amount of service department costs assigned to each of the homes using this allocation base. 2. DHFS auditors believe the step method of allocation should be used by first assigning cleaning costs based on square feet and then kitchen costs based on number of residents. Determine the amount of service department costs assigned to each of the homes using this allocation method (Do not round percentoges in your calculations.) Required: 1. Management of NCl currently allocates the kitchen and cleaning department costs based on the number of residents in each home. Determine the amount of service department costs assigned to each of the homes using this allocation base. 2. DHFS auditors believe the step method of allocation should be used by first assigning cleaning costs based on square feet and then kitchen costs based on number of residents. Determine the amount of service department costs assigned to each of the homes using this allocation method (Do not round percentoges in your calculations.)