Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Service Departments Operating Departments Administrative Janitorial Equipment Maintenance Prep Finishing Total Costs $ 99,000 $ 72,800 $ 43,000 $ 271,100 $ 503,600 $ 989,500 Number of employees 80 50 200 600 400 1,330 Square metres of space occupied 200 1,200 1,000 5,000 8,000 15,400 Machine-hours 10,000 40,000 50,000 The company allocates service department costs by the step-down method in the following order: Administrative (number of employees), Janitorial (space occupied), and Equipment Maintenance (machine-hours). Required: Assuming that the company uses the direct method rather than the step-down method to allocate service department costs, how much overhead cost would be assigned to each operating department? (Negative amounts should be indicated by a minus sign.)

1. Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below Service Departments Operating Departments Equipment Maintenance $43,000 Finishing Janitorial $72,800 50 Administrative Prep Total Costs Number of employees Square metres of space $99,000 80 $271,100 $503,600 $989,500 1,330 15,400 50,000 600 5,000 10,000 200 1,000 400 8,000 40,000 200 1,200 occupied Machine-hours The company allocates service department costs by the step-down method in the following order: Administrative (number of employees), Janitorial (space occupied), and Equipment Maintenance (machine- hours). Required Assuming that the company uses the direct method rather than the step-down method to allocate service department costs, how much overhead cost would be assigned to each operating department? (Negative amounts should be indicated by a minus sign.) Operating Departments Finishing Service Departments Equipment Maintenance Administrative Janitorial re Total Departmental costs before allocations Allocations Administrative Janitorial Equipment maintenance Total costs after allocation