Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicat Problem 7-35 Departmental Cost Allocation [LO 7-3) Logan Products has two production departments-assembly and finishing. These are supported by two service departments-sourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments Sourcing Operations Total Labor Hours Used by Departments Sourcing Operations Assembly Finishing 20,000 40,000 60,000 10,000 60,000 50,000 The costs incurred in the plant are as follows: Departments Sourcing Operations Assembly Finishing Total Departmental Costs $ 189,000 245,000 426,000 271,000 $1,131,000 Required: Use four decimal places (e.g., 33.3333%) in your calculation of percentages. 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first), and (c) the reciprocal method? 2. What are the total costs in the production departments after allocation? (For all requirements, do not round intermediate calculations. Round your final answer to nearest whole dollar amount.) 1 of 2 Next > Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indice ASSEMULY Finishing Total 420, 271,000 $1,131,000 Required: Use four decimal places (e.g., 33.3333%) in your calculation of percentages. 1. What are the costs allocated to the two production departments using (a) the direct method. (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first), and (c) the reciprocal method? 2. What are the total costs in the production departments after allocation? (For all requirements, do not round intermediate calculations. Round your final answer to nearest whole dollar amount.) a Answer is complete but not entirely correct. Total Service Total Dept. Cost Production Allocated Cost Direct Method Assembly $ 209,236 635,236 Finishing 224,764 495,764 Step Method Assembly 213,818 639,818 Finishing 220.182 491,182 Reciprocal Method Assembly 210,641 X 636,641 Finishing 222,542 X 493.542 % b O Next >