Cleaning department Central kitchen Allocation Base Square feet of space Number of residents Annual Operating Cost $ 90,000 $ 120,000 1. Direct method 2 Step method Kitchen 1,000 Nursing Home 2,000 6 Nursing Home Required: 1. Management of NCI currently allocates the kitchen and cleaning department costs based on the number of residents in each home. Determine the amount of service department costs assigned to each of the homes using this allocation base. 2. DHFS auditors believe the step method of allocation should be used by first assigning cleaning costs based on square feet and then kitchen costs based on number of residents. Determine the amount of service department costs assigned to each of the homes using this allocation method. (Do not round percentages in your calculations.) Retirement Home Retirement Home 3,000 4 $ $ Total Check my work 0 0 3