INursing Care Incorporated, or INCI, operates pon a small nursing nome and a retirement nome. There is a singie kitchen used to provide meals to both the nursing home and retirement home, meaning labor costs and utilities costs of the kitchen are shared by the two homes. There is also a centralized cleaning department that provides the cleaning services for both homes as well as the kitchen. The nursing home serves only indigent patients who are on Medicaid. The state Department of Health and Family Services (DHFS) reimburses NCI at Medicaid-approved cost reimbursement rates. The Medicaid reimbursement rates are based on cost information supplied by NCI. The relevant cost and allocation data for the most recent year appear in the following table. Cleaning department Central kitchen Annual Operating Cost $ 105,000 $ 142,500 Allocation Base Square feet of space Number of residents Required: Retirement Kitchen Nursing Home 1,000 2,000 Home 6 3,000 4 1. Management of NCI currently allocates the kitchen and cleaning department costs based on the number of residents in each home. Determine the amount of service department costs assigned to each of the homes using this allocation base. 2. DHFS auditors believe the step method of allocation should be used by first assigning cleaning costs based on square feet and then kitchen costs based on number of residents. Determine the amount of service department costs assigned to each of the homes using this allocation method. (Do not round percentages in your calculations.) Nursing Home Retirement Total Home 1. Direct method $ 0 2. Step method $ 0