CJs Motorcycle Store has two service departments Maintenance and Personnel The maintenance departments costs are allocated on the basis of maintenance hours The personnel departments costs are allocated based on the number of employees CJ has two production departments Assembly and Repairs The following data is provided to you for review Support Departments Production Departments Maintenance Personnel Assembly Repairs Budgeted costs Support Departments Support Departments Production Departments Production Departments Maintenance Personnel Assembly Repairs Budgeted cost $320,000 $80,000 $160,000 $240,000 Budgeted maintenance hours 800 960 640 Number of employees 40 160 480 Required a) Using the direct method, calculate how much of the maintenance and personnel costs will be allocated to Assembly and Repairs, respectively b) Using the step down method, presuming that Maintenance is allocated first, calculate how much of the maintenance and personnel costs will be allocated to Assembly and Repairs, respectively

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CJs Motorcycle Store has two service departments: Maintenance and Personnel. The maintenance departments costs are allocated on the basis of maintenance hours. The personnel departments

CJs Motorcycle Store has two service departments: Maintenance and Personnel. The maintenance departments costs are allocated on the basis of maintenance hours. The personnel departments costs are allocated based on the number of employees. CJ has two production departments: Assembly and Repairs. The following data is provided to you for review: Support Departments Production Departments Maintenance Personnel Assembly Repairs Budgeted costs

	Support Departments	Support Departments	Production Departments	Production Departments
	Maintenance	Personnel	Assembly	Repairs
Budgeted cost	$320,000	$80,000	$160,000	$240,000
Budgeted maintenance hours		800	960	640
Number of employees	40		160	480

Required:

a) Using the direct method, calculate how much of the maintenance and personnel costs will be allocated to Assembly and Repairs, respectively.

b) Using the step-down method, presuming that Maintenance is allocated first, calculate how much of the maintenance and personnel costs will be allocated to Assembly and Repairs, respectively.