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Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and Western. Personnel costs are allocated on the basis of

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Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and Western. Personnel costs are allocated on the basis of employees and Legal costs are allocated on the basis of hours. A summary of Baldwin operations follows: Employees Hours Department direct costs Required: Personnel Legal Eastern Western 40 10,800 $ 430,000 120 5,400 $ 290,000 $ 1,330,000 40 1,800 $ 920,000 a. Allocate the cost of the service departments to the operating divisions using the direct method. b. Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal. c. Allocate the cost of the service departments to the operating divisions using the reciprocal method. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Allocate the cost of the service departments to the operating divisions using the direct method. Note: Amounts to be deducted should be indicated by a minus sign. Personnel Legal Eastern Western Department costs $ 430,000 $ 290,000 $ 1,330,000 $ 920,000 Personnel (430,000) $ 0 allocation Legal allocation $ 0 (290,000) Total costs $ 0 $ 0 $ 1,330,000 920,000

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