E F G H Use the following information to allocate costs using the direct, step, and reciprocal methods: Not-A-Mega Bank has three service departments (Administration, Communications, and Facilities) and two production departments (Deposits and Loans). A summary of costs and other data for each department prior to allocation of service department costs for the year ended December 31 follows: Direct costs..... Employee hours Number of employees Square footage occupied... Administration Communications Facilities Deposits Loans $160,000 $240,000 $203,200 $6,730,000 $4,850,000 15,500 21,000 13,500 281,250 218.750 140 100 3.500 9,600 4.000 176,000 144,000 The costs of the service departments are allocated on employee hours: Communications, number of employees, and the following bases Administration, os, square footage occupied The costs of the service departments are allocated on the following bases: Administration, employee hours: Communications, number of employees and Facilities, square footage occupied GIVEN Service Departments Administration Communications Facilities Production Departments Deposits Loans Total M Direct Costs $ 160,000 $ 240,000 $ 203,200 $ 6,730,000 $ 4,850,000 $ 12,183,200 15,500 15,500 15,500 26 27 28 29 Employee Hours Number of Employees Square footage 15,500 140 176,000 15,500 100 144,000 93,000 260 337,100 3,500 600 4,000 20 DIRECT METHOD Service Departments Administration Communications Facilities Production Departments Deposits Loans Total Administration: Employee Hours Allocation Percentage 39 Communications: Number of Employees Allocation Percentage 40 42 43 44 Facilities: Square Footage Allocation Percentage 46 47 48 49 Direct Costs From - Administration From - Communications From - Facilities H STEP METHOD (Facilities, Communications, and then Administration) Service Departments Production Departments Administration Communications Facilities Deposits Loans Total Facilities: Square footage Allocation Percentage Communications: Number of Employees Allocation Percentage 0 -1 52 64 65 66 Administration: Employee Hours Allocation Percentage 68 69 70 71 Direct Costs From - Facilities From - Communications From - Administration in RECIPROCAL METHOD Service Departments Administration Communications Facilities 00 Production Departments Deposits Loans Total Facilities Square Footage Allocation Percentage 81 83 84 Communications: Number of Employees Allocation Percentage 88 Administration Employee Hours Allocation Percentage 89 91 92 93 94 Direct Costs From - Facilities From - Communications From - Administration 96