Given the following data for operating departments A and B, prepare a schedule using the direct and step method of allocation to allocate service department costs to the operating departments and show total cost for department A and B.

Costs # of employee Square feet

Operating dept A $1600 100 300

Operating dept B $1300 100 400

Maintenance $3000 100 300

Payroll $4000 100 300

For the step method begin with the maintenance department.