E Problem 2 Allocation of Service Department Cost- 32 Direct Method Blaine Software has the following two service and 4 production departments related to its business: 6 7 8 9 Department cost o Number of square feet Number of paychecks Maintenance costs are allocated on the basis of number of square feet. Payroll costs are allocated based on the number of paychecks Required: Using the Direct Method allocate the amounts of overhead from each service department to each production department. % of square feet custodial allocation % of transactions Accounting Allocation 15 points Service Departments Maintenance $120,000 Payroll $260,000 Production Departments Games $3,500,000 15,000 500 Phone Apps $2,500,000 35,000 1,500 Software X Software Y