K&D Partners provides consulting services for a variety of clients. The company has two producing divisions, one for retail companies and one for industrial companies, and two service departments, personnel and administrative. Until now the company has not allocated service department costs. However, K&D has decided to allocate these costs to the producing departments using an activity-based allocation system. (Click the icon to view information about K&D's activities.) Data for the activities follow: (Click the icon to view the activity data.) Read the requirements. Requirement 1. Determine the costs allocated to the retail and industrial divisions using the direct method. (Abbreviations used: Admin. = administrative, Act. = activity. Do not round until your final answer, then round to the nearest dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Retail Division Industrial Division Personnel Admin. Act. 1 Act. 2 Total Act. 3 Act. 4 Act. 5 Total Direct costs Personnel Administrative Total costs after allocation Requirement 2. Determine the costs allocated to the retail and industrial divisions using the step-down method. The personnel department costs should be allocated first. (Abbreviations used: Admin. = administrative, Act. = activity. Do not round until your final answer, then round to the nearest dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Retail Division Industrial Division Personnel Admin. Act. 1 Act. 2 Total Act. 3 Act. 4 Act. 5 Total Direct costs Personnel Administrative Total costs after allocation The retail division has Activity 1 and Activity 2 and the industrial division has Activity 3, Activity 4, and Activity 5. The company has decided to allocate personnel costs on the basis of number of employees and administrative on the basis of the direct costs of the activities in each division. However, administrative services are provided only to activities 2 and 3, so no administrative costs are allocated to activities 1, 4, and 5. Number of Personnel Direct Costs Personnel 10 $ 98,000 Administrative 3 140,000 Retail: Activity 1 2 90,000 Activity 2 17 220,000 Industrial: Activity 3 20 600,000 Activty 4 0 70,000 Activity 5 7 140,000