Alpha Manufacturing Corporation has two service departments, Custodial Services and Maintenance, and three production departments, Cutting, Milling, and Assembly. The company allocates the cost of Custodial Services on the basis of square footage and Maintenance on the basis of labor-hours. No distinction is made between variable and fixed costs. Budgeted operating data for the year just completed follow:

	Service Departments			Production Departments
	Custodial Services	Maintenance		Cutting	Milling	Assembly
Budgeted costs before allocation	$69,000	$57,000		$165,000	$120,000	$180,000
Square feet	47,000	65,000		10,000	44,000	26,000
Labor-hours				4,000	8,000	8,000

Required:

a. Prepare a schedule to allocate service department costs to the production departments by the direct method.

b. Prepare a schedule to allocate service department costs to the production departments by the step-down method, allocating Custodial Services first.