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Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $234.350 are allocated based on budgeted maintenance-hours. Personnel Department costs of

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Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $234.350 are allocated based on budgeted maintenance-hours. Personnel Department costs of $72,650 are allocated based on the number of employees. The costs of operating departments A and B are $998,000 and $490,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Support Departments Production Departments Maintenance Personnel Department Department B Budgeted costs $234,350 $72.650 $998.000 $490,000 Budgeted maintenance NA 25% 40% 35% hours Number of employees 10% NA 30% 60% Required: 1) Determine the total support costs allocated to each of the producing departments using a) Direct method b) Step method c) Reciprocal method

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