Logan Products has two production departments-assembly and finishing. These are supported by two service departments-sourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments. Departments Sourcing. Operations Assembly Finishing Total Total Labor Hours Used by Departments Assembly 40,000 60,000 Sourcing Sourcing Operations The costs incurred in the plant are as follows: a. Direct Method Assembly Finishing b. Step Method Assembly Operations 20,000 10,000 Departmental Costs $ 180,000 230,000 420,000 265,000 $ 1,095,000 Required: 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first, and (c) the reciprocal method? 2. What are the total costs in the production departments after allocation? (For all requirements, do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Total Service Department Cost Allocated Total Production Cost Finishing 60,000 50,000

Logan Products has two production departments--assembly and finishing. These are supported by two service departments - sourcing (purchasing and handling of materials and human resources) and operations (work scheduting, supervision, and inspection) Logan has the following labor hours devoted by eoch of the service departments to the other departments. The costs incurred in the plant are as follows: Required: 1. What are the costs allocited to the two production departments using (a) the direct thethod, (b) the step mothod, when the sourcing degartinent that provides the greates percentage of services to other service dopariments goes fint, and (c) the reciprocal method? 2. What are the total costs in the production departments after allocation? For all requirements, do not round intermediate calculations. Aound your final answern to neareat whole dollar amount.)