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Problem 17-25 Dual Allocation of Service Department Costs (LO 17-1, 17-2) [The following information applies to the questions displayed below.] Tampa Instrument Company manufactures gauges for construction machinery. The company has two production departments: Machining and Assembly. There are three service departments: Maintenance, Human Resources (HR), and Computer Aided Design (CAD). The usage of these service departments' output during the year just completed is as follows: Provision of Service Output (in hours of service) Provider of Service User of Service HR Maintenance CAD HR Maintenance 1,000 CAD 1,000 1,000 Machining 3,000 2,000 4,000 Assembly 5,000 3,000 2,000 Total 10,000 6,000 6,000 The budgeted costs in Tampa Instrument Company's service departments during the year are as follows: HR Variable $ 65,000 Fixed 240,000 Total $305,000 Maintenance CAD $ 80,000 $ 65,000 228,000 310,000 $308,000 $375,000 When Tampa Instrument Company established its service departments, the following long-run needs were anticipated. Long-Run Service Needs (in hours of service) Provider of Service User of Service HR Maintenance CAD HR Maintenance 500 CAD 1,500 400 Machining 3,000 4,000 4,500 Assembly 5,000 1,600 1,500 Total 10,000 6,000 6,000 Required: Use dual cost allocation in conjunction with each of the following methods to allocate Tampa Instrument Company's service department costs: (1) direct method and (2) step-down method. Problem 17-25 Part 2 1. 2. Step-down method combined with dual allocation. 2. a. Variable costs 3. b. Fixed costs 4. c. Total costs allocated omplete this question by entering your answers in the tabs below. Req 2A Req 2B Req 2C Step-down method combined with dual allocation for total costs allocated. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Machining Variable costs Fixed costs Total costs $0 Assembly $0