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CERCE Corporation USES the direct method to allocate Service department costs to operating departments . The company has two service departments , Administrative and Facilities

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CERCE Corporation USES the direct method to allocate Service department costs to operating departments . The company has two service departments , Administrative and Facilities , and two operating departments . Assembly and Finishing. SERVICE Department Operating Department Administrative FACILITIES ASSEMBLY Finishing* DEPartmental costs $ 31 , 480 $ 38 , 315 $ 125 , 580 $ 417 , 650 EmployEE hours 3, 5010 1 , 170 25 , 8BE 25 , 8BE SPACE OCCUPIED- - Square FEET 8 , 580 1 , 170 45 , 890 2 . 580 Administrative Department costs are allocated on the basis of EmployEE hours and Facilities Department Costs are allocated on the basis of SPACE Occupied. Required :` Allocate the SERVICE department costs to the operating departments using the direct method . Service Department Operating Department Administrative* Facilities Assembly Finishing Total costs after allocation

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