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 A Required B Required C Complete this question by entering your answers in the tabs below. Department costs Personnel allocation Legal allocation Total costs Personnel 10,800 $ 390,000 Personnel Legal Required: 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. Legal 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. Eastern $ 250,000 Required A 40 Western Eastern Required B 120 5,400 $ 1,290,000 > Western 40 1,800 $ 880,000

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: Required: 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. Complete this question by entering your answers in the tabs below. 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