Exercise 1 Bob Company has two seryice departments, maintenance and grounds, and two production departments, fabricating and assembly. Management has decided to allocate maintenance costs on the basis of machine hours used by the departments and grounds costs on the basis of square feet occupied by the departments. The following data appear in the company's records for 20 14: Item ' Maintenance ' Grounds : Fabricating ' Assembly _. Machine hours ' 0 ? 1,500 5 12,000 ' 0,000 ' Square feet ' 3,000 ' 0 " 15,000 ' 20,000 ' Support costs (in RM) ' 15,000 ' 14,000 3' 45,000 ' 25,000 REQUIRED: (a) Allocate service department costs to the production departments using the direct method. (b) Allocate service department costs to the production departments using the sequential method, assuming that the costs of the seryice department incurring the greatest cost are allocated first. (c) Allocate service department costs to the production departments using the reciprocal method