Consider the following departmental costs, where human resources and janitorial support are considered to be service departments. In the top illustration, use the pick lists accessible from within the four boxed areas to select the correct cost allocations, assuming use of the direct method. In the bottom illustration, use the five boxed areas to complete the cost allocation using the step method. Assume human resource costs are allocated based on number of employees. Assume janitorial costs are allocated based on square footage. For the step allocation assume that human resources are allocated first, then janitorial. Correct selections within each boxed area will turn green. When all nine boxes are green, contemplate carefully why different cost allocations occur under the alternative methods. DIRECT ALLOCATION Human Janitorial Fabrication Resources Assembly Department costs $ 600,000 $ 400,000 $ 4,000,000 $ 6,000,000 HR allocation (600,000) 240,000 360,000 Janitorial allocation (400,000) 300,000 100,000 Totals after allocation $ $ 4,540,000 6,460,000 Number of employees n/a n/a 40 60 Square feet n/a n/a 7,500 2,500STEP ALLOCATION Human Janitorial Resources Fabrication Assembly Department costs 600,000 $ 400,000 $ 4,000,000 $ 6,000,000 HR allocation (600,000) 100,000 200,000 300,000 Janitorial allocation (500,000) Totals after allocation 4,200,000 $ 6,300,000 Number of employees n/a 20 40 60 Square feet n/a n/a 7,500 2,500U Question 1 1 pts Under the Direct Allocation Method, the HR cost will be allocated to the Fabrication department by multiplying the H R cost by? o 75% o 25% O 60% O 40% Question 2 1 pts Under the Direct Allocation Method, the Janitorial cost will be allocated to the Assembly department by multiplying the Janitorial cost by? Q 60% O 25% o 40% O 75% Question 3 1 pts Under the Step Allocation Method, the HR cost will be allocated to the Fabrication department by multiplying the HR cost by? O 16.6667% O 75% O 25% O 33.3334%Question 4 1 pts Under the Step Allocation Method, the HR cost will be allocated to the Janitorial department by multiplying the HR cost by? O 33.3334% O 16.6667% O 75% O 25%