Direct and step methods

Salado Inc. provides cleaning services through its Residential and Commercial divisions. Support services of the company

are provided by Personnel and Administration areas. Costs of these two areas are allocated to the revenue producing

departments. Personnel costs are allocated using number of employees; administration costs are allocated using direct

department costs. The following annual budgeted information $($presented in a benefits$-$provided ranking$)$ is available:

a$.$ Using the direct method, allocate the costs of Personnel and Administration to the Residential and Commercial

divisions.

Note: Do not round proportions; round your final answer to the nearest whole dollar.

b$.$ Using the step method, allocate the costs of Personnel and Administration to the Residential and Commercial

divisions.

Assume that the departments are listed in a benefits$-$provided ranking.

Do do not round proportions round your final answer to the nearest whole dollar.

Total support cost allocated to residential $=$ $

total support costs allocated to commerical $=$ $

C$.$ salado Prprices jobs by the direct labor hour for residential services and by the square foot cleaned for commercial services. Compute the full cost providing one direct labor hour of services for residential and for one square foot cleaned for commercial using $1$ the direct method and $2$ the step method Rounround your answers to two decimal places