Cougar Company has two service departments, Maintenance and Cafeteria, as well as two production

departments, Mixing and Finishing. Maintenance Department costs are allocated based on direct labor

hours and Cafeteria Department costs are allocated based on number of employees. The following data

are available:

Maintenance Cafeteria Mixing Finishing

Direct costs $7,000 $2,800 $1,200 $400

Direct labor hours 180 50 20 10

Number of employees 36 120 540 60

Assume the step-down method of allocating service departments' costs is used. The Maintenance

Department renders the greatest service and is allocated first.

Required:

A) Determine the total costs of the Mixing Department after allocating the service departments' costs.

B) Determine the total costs of the Finishing Department after allocating the service departments' costs.