Jacksonville Instrument Company manufactures gauges for construction machinery. The company has two production departments: Machining and Finishing. There are three service departments: Human Resources (HR), Maintenance, and Design. The budgeted costs in Jacksonville Instrument Companys service departments during the year are as follows:

	HR		Maintenance		Design
Variable	$	62,000	$	87,000	$	62,000
Fixed		260,000		220,000		400,000
Total	$	322,000	$	307,000	$	462,000

The usage of these service departments output during the year just completed is as follows:

Provision of Service Output (in hours of service)
	Provider of Service
User of Service	HR	Maintenance	Design
HR
Maintenance	1,500
Design	1,500	1,500
Machining	2,000	2,500	3,000
Finishing	5,000	4,000	1,000
Total	10,000	8,000	4,000

When Jacksonville Instrument Company established its service departments, the following long-run needs were anticipated.

Long-Run Service Needs (in hours of service)
	Provider of Service
User of Service	HR			Maintenance			Design
HR
Maintenance		500
Design		1,000			1,000
Machining		4,500			5,000			2,400
Finishing		4,000			2,000			1,600
Total		10,000			8,000			4,000

Required:

Use the dual approach in conjunction with each of the following methods to allocate Jacksonville Instrument Companys service department costs: (1) direct method, and (2) step-down method.