E12-31 (similar to) Question Help or M&A Partners provides consulting services for a variety of cients. The company has two producing divisions, one for retail companies and one for industrial companies, and two service departments, personnel and administrative. Until now the company has not allocated service department costs. However, M&A has decided to allocate these costs to the producing departments using an activity-based allocation system. Unt (Click the icon to view information about M&A's activities) Data for the activities follow Click the icon to view the activity data) Read the requirements Requirement 1. Determine the costs allocated to the retail and industrial divisions using the direct method (Abbreviations used: Admin. administrative, Act Wo activity Do not round until your final answer, then round to the nearest dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. For amounts with a $0 balance, make sure to enter "0 in the appropriate cell.) nt Retail Division Industrial Division pt Personnel Admin Act. 1 Act 2 Total Act 3 Act. 4 Act. 5 Total ut Direct costs 80000 120000 65000 285000 220000 70000 140 400000 610000 (80000) 5217 24348 Personnel (120000) Administrative Total costs after 2- 70000 24 allocation 2. 2- Enter any number in the edit fields and then click Check Answer 1 part remaining Clear All Check Answer - X i More Info The retail division has Activity 1 and Activity 2 and the industrial division has Activity 3, Activity 4. and Activity 5 The company has decided to allocate personnel costs on the basis of number of employees and administrative on the basis of the direct costs of the activities in each division. However, administrative services are provided only to activities 2 and 3, so no administrative costs are allocated to activities 1, 4, and 5 Print Done - X Data Table Number of Personnel Direct Costs Personnel 8 $ 80,000 Administrative 10 120,000 Retail: Activity 1 3 65,000 Activity 2 16 220,000 Industrial: Activity 3 20 400,000 0 Activty 4 70,000 Activity 5 7 140,000 Print Done - X i Requirements 1. Determine the costs allocated to the retail and industrial divisions using the direct method 2. Determine the costs allocated to the retail and industrial divisions using the step-down method. The personnel department costs should be allocated first Print Done