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Goodwin Corporation has three operating departments (Fabricating, Assembly, and Finishing) and two service departments (Custodial and Administrative). The following information has been provided: Custodiale Admin-
Goodwin Corporation has three operating departments (Fabricating, Assembly, and Finishing) and two service departments (Custodial and Administrative). The following information has been provided: Custodiale Admin- - Fabricating: + Assembly+ + Finishing - Department Costs: $ 250,000 000 p $ 400,000 $ 400,000 - - --* #employees 10- + -- Ne 80 100 - 60+ Square feet- + -- * 15,000 - 30,000 - 35,000 - 20,000- Allocations are based on the following: Custodial:- Square feet Administrative: Number of employees tt t Required: a. What is the total service department cost allocated to Finishing if the Direct method is used to allocate service department costs? b. What is the total service department cost allocated to Finishing if the Step method is used to allocate service department costs and the Custodial Department costs are allocated first
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