Lewis Custom Manufacturing produces kitchen cabinets in a two-step production process - cutting and sanding. The manufacturing center is supported by two service centers - a health clinic and a janitorial service. The following table reveals certain facts about each activity: Health Clinic Janitorial Service Sanding Department Employees Square footage Cost incurred Cutting Department 15 36,000 $2,800,000 3,600 $720,000 1,800 $500,000 24,000 $3,200,000 a) Using the direct method, allocate the service department costs to production. The clinic costs are to be allocated based on employees, and the janitorial costs are to be allocated based on the square footage. b) Using the step method, allocate the service department costs to production. The clinic costs are to be allocated based on employees, and the janitorial costs are to be allocated based on the square footage. The first step will be to allocate clinic costs. The clinic employees maintain their space and do not rely upon the janitorial service. However, janitorial employees occasionally sustain an injury and utilize the clinic. Worksheet 5 Health Clinic 720,000 Janitorial Service $ 500,000 Cutting Department 2,800,000 Sanding Department 3,200,000 Cost incurred Clinic allocation $ $ Health Clinic 720,000 Janitorial Service $ 500,000 Cutting Department 2,800,000 Sanding Department 3,200,000 $ $ Cost incurred Clinic allocation Janitorial allocation Total cost Clinic allocations: Janitorial allocations: b) Health Clinic 720,000 J anitorial Service $ 500,000 Cutting Department 2,800,000 Sanding Department 3,200,000 $ Cost incurred Clinic allocation Janitorial allocation Total cost Clinic allocations: Janitorial allocations