II. Use the Direct Method to allocate Service Department Costs to the Operating Departments based on number (percentage) of employees. Painting Dept = 40 employees Welding Dept = 110 employees Operating Operating Dept. Dept. Painting Welding $650,000 $990,000 Dept Service Dept. Service Service Maintenance Dept. Dept. Cafeteria Custodial costs $390,000 $240,000 $175,000 before allocation Maintenance Cafeteria Custodial Total after allocation