Allocation: Fixed and Variable Costs, Budgeted Fixed and Variable Costs 2,405 hours per year for the Yuma office and 1,295 hours per year for the Bernalillo office. This corresponds to the expected usage for the coming year. Required: 2. Since the offices produce services, not tangible products, what purpose is served by allocating the budgeted costs? It serves the same purposes as costing out tangible products (e.g., pricing, profitability analysis, and performance evaluation). Determine the amount of the legal services center's costs that should be allocated to each office. 4. Did the costs allocated differ from the costs incurred by the legal services center? If so, wl